We recently published a list of 12 Best WallStreetBets Stocks To Buy According to Hedge Funds. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other best WallStreetBets stocks to buy according to hedge funds.
The World Economic Forum’s Global Retail Investor Outlook 2024 highlighted a sustained transition towards younger retail investors. The research, which spans 13 economies, reflects that 30% of Gen Z start investing in early adulthood, against 9% of Gen X and 6% of Baby Boomers. By the time they enter the workforce, the research demonstrated that 86% of Gen Z have learned about personal investing as compared to 47% of Boomers, highlighting a generational transformation in financial habits.
Current Retail Investor Trends
WEF’s survey mentions that retail investors continue to view cryptocurrency as more understandable and easier as compared to traditional investments such as ETFs, MFs, stocks, and bonds. As per the research, 29% tend to avoid stocks because of a lack of understanding, while only 24% mention the same regarding crypto. Interestingly, among the investors aged under 44 holding cryptocurrencies, over half allocated at least a third of their portfolio to it.
Furthermore, WEF’s research mentioned that financial priorities have been pivoting towards short-term needs. In 2024, 51% of investors focused on emergency savings, reflecting an increase from 41% in 2022, while those who emphasized having sufficient to retire declined from 48% to 42%. As per Dean Frankle, Managing Director and Partner, BCG, individual participation in capital markets can result in long-term financial well-being.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Retail Investors Continue to Pump Billions
Bloomberg reported that individual investors are becoming relentless when it comes to investing money in the volatile US markets. The firm, while quoting JPMorgan Chase & Co.’s Emma Wu, mentioned that considering the continuous dip-buying strategy throughout the crash, there are estimates that retail traders’ portfolios remain far from breakeven. However, individual investors’ strategy of “buy-the-dip” amidst trade fears has been doing better as compared to the broader market.
Interestingly, retail investors invested US$11 billion in equities since April 2, when Trump’s administration revealed reciprocal levies, reported Bloomberg, while citing data through Wednesday’s close (April 9, 2025). Bloomberg also highlighted that individual investors continue to dip their toes into stocks, while well-established institutional investors are rotating into international markets and less risky assets, including Treasuries.
Our Methodology
To list the 12 Best WallStreetBets Stocks To Buy According to Hedge Funds, we sifted through the WallStreetBets forum on Reddit and chose the trending ones. Next, we shortlisted the ones that are popular among hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 96
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company. The company’s strategy of aiming high-volume AI workloads can yield benefits in the long run. With AI applications becoming more widespread and diverse, there can be increased demand for cost-effective solutions balancing performance and efficiency. Furthermore, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s strength remains in its ability to compete throughout multiple segments of the broader semiconductor market. The company has been gaining market share in traditional CPU markets for servers and client devices.
In FY 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see clear growth opportunities based on its strength of product portfolio and growing demand for high-performance and adaptive computing. On April 15, the company completed its initial assessment of a new license requirement implemented by the US government for exporting certain semiconductor products to China (which includes Hong Kong and Macau) and D:5 countries, or to companies headquartered or with an ultimate parent in such countries. The Export Control applies to its MI308 products.
Furthermore, Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates that the Export Control might result in charges of up to ~$800 million in inventory, purchase commitments, and related reserves. However, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s growth prospects seem to be strong, mainly in the AI and data center markets. Its emphasis on developing competitive AI accelerators and enhancing presence in high-performance computing places it well for future growth. Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“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.”
Overall, AMD ranks 6th on our list of best WallStreetBets stocks to buy according to hedge funds. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for a deeply undervalued AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.