Harvard University Stock Portfolio: Top 10 Stock Picks

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

Harvard Management Company’s Stake: $93 million

Advanced Micro Devices, Inc. (NASDAQ:AMD), headquartered in Santa Clara, California, is a leading global semiconductor company known for designing computer processors and related technologies for both business and consumer markets. The company operates through several key segments, including Data Center, Client, Gaming, and Embedded.

In the third quarter, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported revenue of $6.8 billion, reflecting an 18% increase year-over-year. This growth was driven by strong sales of EPYC and Instinct data center products, as well as high demand for Ryzen PC processors. The Data Center segment achieved a record revenue of $3.5 billion, a 122% increase from the previous year, while Client segment revenue grew by 29%.

On October 31, Baird reaffirmed its positive outlook for AMD, maintaining an Outperform rating with a $175 price target. The firm expects significant growth in AMD’s artificial intelligence revenue by 2025, projecting that even capturing just 5% of the AI GPU market could signal strong performance. This growth is anticipated to come as AMD continues to gain market share in both the Data Center CPU and Client CPU markets. Baird forecasts a nearly 25% year-over-year revenue surge for AMD in 2025, a growth rate that outpaces most other semiconductor companies.