Goldman Sachs’ Top Growth Investors: 34 Stocks With The Highest Investment For Growth

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

Growth Investment Ratio: 92%

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor designer that designs and sells CPUs and GPUs. Its products are used by consumers and businesses. In today’s AI era, Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the few companies capable of offering both CPUs and GPUs for AI computing. This places it well to capitalize on any cost constraints that NVIDIA’s GPU customers might face or for firms looking to switch away from Intel’s CPUs. Yet, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s limited resources also mean that the firm struggles to compete at scale with its larger rivals. As a result, it is the perpetual underdog in an industry where high volumes often determine brand and pricing power. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s third-quarter results led to the firm’s Gaming business seeing a strong 90%+ operating income drop, and soon afterward, the firm announced that it would lay off 4% of its workforce. Sustained revenue from AI customers is key to Advanced Micro Devices, Inc. (NASDAQ:AMD)’s hypothesis.

During the Q3 2024 earnings call, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s management commented on its AI business:

“Turning to our Data Center AI business, Data Center GPU revenue ramped as MI300X adoption expanded with cloud, OEM and AI customers. Microsoft and Meta expanded their use of MI 300X accelerators to power their internal workloads in the quarter. Microsoft is now using MI 300X broadly for multiple co-pilot services powered by the family of GPT 4 models.

Meta announced they have optimized and broadly deployed MI 300X to power their inferencing infrastructure at scale, including using MI300X exclusively to serve all live traffic for the most demanding Llama 405B frontier model. We are also working closely with Meta to expand their Instinct deployments to other workloads where MI300X offers TCO advantages, including training. MI300X public cloud instance availability expanded in the quarter with Microsoft, Oracle Cloud and multiple AI specialized cloud providers now offering Instinct instances with leadership performance and TCO for many of the most widely used models. Instinct cloud instance adoption is strong with multiple start-ups and industry leaders adopting MI300 instances to power their models and services, including Essential AI, Fireworks AI, Luma AI and Databricks.”