Artisan Partners, an investment management company, released its “Artisan Global Opportunities Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. US equities experienced significant gains in Q4, showcasing a strong year. The portfolio showed slight weakness in Q4 but posted a strong absolute return in 2024. In the fourth quarter, the fund’s Investor Class ARTRX returned -1.67%, Advisor Class APDRX posted a return of -1.65% and Institutional Class APHRX returned -1.62%, compared to a -0.99 % return for the MSCI All Country World Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Artisan Global Opportunities Fund emphasized stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return Advanced Micro Devices, Inc. (NASDAQ:AMD) was 4.16%, and its shares lost 37.91% of their value over the last 52 weeks. On April 2, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $102.96 per share with a market capitalization of $167.272 billion.
Artisan Global Opportunities Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:
“Among our top detractors were Advanced Micro Devices, Inc. (NASDAQ:AMD), Novo Nordisk and Danaher. Shares of AMD declined in Q4, which capped off a frustrating year of stock performance that did not seem to match its fundamental progress. Regarding its AI opportunity, the company accomplished everything we had hoped for over the past 18 months. It successfully entered the market with its MI300 graphic processing unit (GPU) chip and raised its latest 2024 AI-related revenue guidance to $5.0 billion from $4.5 billion. However, its shares have experienced weakness for two primary reasons. First is the emergence of custom AI accelerator chip solutions from Broadcom and Marvell (a Q4 buy) as alternatives to the GPU solutions from NVIDIA and AMD. While this competitive threat is more significant than we had initially anticipated, we continue to be excited about AMD’s opportunity moving forward. We believe the AI-related market will grow to $400 billion–$500 billion in the next three years (compared to $100 billion in 2024). We expect that NVIDIA’s market share will fall from ~90%in2024to60%–80%overthesameperiodasitcedes market share to AMD (from5%in2024to10%–20%) and custom accelerator solutions (from 5% in 2024 to 10%–20%). Under these assumptions, we expect AI GPUs to double AMD’s total 2024 sales. Second is cyclical struggles within other areas of its business. While data center revenues have more than doubled over the past two years, the gaming business is down more than 60%, and embedded (specialized chips found in various industrial and consumer products) is down20%.As its data center business continues to grow and the cyclical areas of its business bounce back, we expect AMD to deliver stronger earnings growth.”
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the fourth quarter which was 107 in the previous quarter. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
We covered Advanced Micro Devices, Inc. (NASDAQ:AMD) in another article, where we shared the list of high-risk, high-reward growth stocks you may be interested in incorporating into your portfolio. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.