Billionaire Ken Fisher’s Top 15 Stock Picks Heading into 2025

9. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Fisher Asset Management’s Equity Stake: $3.90 Billion

Number of Hedge Funds Holding Stakes: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that offers x86 microprocessors and graphics processing units (GPUs). It’s been an unforgettable year for the semiconductor specialist as its stock is down by about 1% for the year. The underperformance stems from concerns that the company needs to catch up amid the AI frenzy.

Advanced Micro Devices, Inc. (NASDAQ:AMD) reported healthy year-over-year growth for its third quarter on October 29, 2024. Revenue was up 18% year over year to $6.8 billion as adjusted earnings shot up 31% to $0.92 a share. Nevertheless, Wall Street was unimpressed with its progress in the artificial intelligence chip market. A weaker-than-expected guidance has also not helped the stock’s sentiments in the market

Advanced Micro Devices, Inc. (NASDAQ:AMD) remains one of billionaire Ken Fisher’s top 15 stock picks heading into 2025, witnessing solid demands for its newly launched MI325X GPU. The company is also on course to launch the next generation M1350 Series chip in the second half of the following year to take advantage of the strong demand for AI chips.

Advanced Micro Devices, Inc. (NASDAQ:AMD) has a smaller data center GPU business than Nvidia, but both can thrive in the market. The AI GPU market could be worth $500 billion by 2028, offering big opportunities for AMD. Their Epyc server CPUs are also popular with cloud service providers, providing more growth potential.

Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:

“Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) lagged the market after the company reported earnings results that, while generally strong, left the market wanting more. The company reported AI revenue of ~$600 million and increased its forward-looking outlook for AI revenue growth, but shares took a breather, as results missed elevated expectations after the stock’s strong performance. Despite the stock’s underperformance during the quarter, the company’s AI story remains very much intact. The growth outlook for the company is supported by better cloud demand, enterprise recovery and continued share gains ahead of the company’s new AI product launch.”