Jim Cramer Discusses These 10 Stocks & An Outfit Better Than DeepSeek

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

Number of Hedge Fund Holders In Q3 2024: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a chip designer that is the second largest player in the CPU and GPU markets. Its ability to target both markets has acted as an insulator for the firm against NVIDIA’s dominance in the AI industry. Advanced Micro Devices, Inc. (NASDAQ:AMD) has capitalized on Intel’s manufacturing woes, but the shares have lost 8.4% year-to-date as the firm struggles to displace NVIDIA’s high-performing GPUs. Cramer’s comments about Advanced Micro Devices, Inc. (NASDAQ:AMD) came after the firm’s fourth-quarter data center business and outlook disappointed investors:

“And then you know AMD didn’t help the case. Because AMD did not do well last night. . . yeah that Citi downgrade was substantive.”

“They have a transition going on.”

“You can’t [defend AMD] because it was indefensible. They basically talked about how things are going to be flat. That they don’t really have the right chips right now. They are doing very well versus Intel on the less expensive CPUs, but they kinda missed the cycle. Now they’ll catch up in the second half, but you don’t hear them in the mix. That’s the problem. Because they don’t have the right GPUs. That’s what’s going on.”

“[On CEO Lisa Su saying AMD delivered greater than $5 billion dollar data center revenue] Well true, but AI revenue is flat to down for the first half. And there’s going to be margin dilution. Which is why you’re seeing this. There’s an inventory build. There’s poor leverage to what they’re doing. This again cuts to you know who, I don’t need to say I anymore because I say it too much . . .NVIDIA.”

“[on next month being the anniversary of stock touching $227] Well I mean there was a time, look she was putting up, Lisa Su was putting up very big numbers. She is. Uh took about five billion dollar projections, she’s making that. But what most people say is, wait a second, this a halcyon time for what she makes, the GPUs, and she’s not delivering.”

“But look I think she’ll be back. They’re making a lot of money. But it’s fallen very much out of favor. And you got a downgrade today, and I just feel that people just say, you know what, NVIDIA won. NVIDIA won another round and the long knives are out for NVIDIA we’re waiting to hear what they’re going to do with China, we know that there are a lot of people who say that Amazon’s going to talk about more custom chips. Maybe that’s Broadcom. But Amazon, so far is not using AMD GPU. And that was what the customer they really needed and we don’t see it.”