We recently compiled a list of the Jim Cramer Recommends These 10 Stocks. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against the other stocks recommended by Jim Cramer.
In a recent episode of Squawk on the Street, Jim Cramer discussed how global markets have become more interconnected than ever. He compared this to 1987, when Japan’s influence on U.S. stocks was clear, with Japanese investors driving up prices in sectors like waste management and railroads. This connection between markets was strong then, and it’s even stronger now.
“Obviously, we went down on Japan, and we went up on Japan. This is somewhat reminiscent of 1987, when, if Japan was up, they’d come over and flood our markets. Sometimes they didn’t care; they’d just start buying stocks, often starting with waste management and Browning-Ferris. “
Cramer explained that the weakening dollar further enhances this global link, benefiting companies that sell internationally, such as Coca-Cola. He also observed a significant shift in investor behavior—where people once looked for reasons to stay out of the market, they now seem more inclined to stay in, finding optimism even in bad news. This change in attitude mirrors today’s market environment, where good news lifts stocks, and even bad news is met with hope for a recovery.
“Back in the day, you’d wonder why Browning-Ferris was up, and the answer would be, ‘Large buyer, large buyer, large buyer.’ Eventually, you’d go out for a beer, and it turns out it’s Tokyo. They loved the rails. There was such craziness back then, but now, we’re even more linked. And with the dollar continuing to weaken, it’s good that we’re linked for companies like that.”
Jim Cramer noted the irony of discussing September as a traditionally bad month for the market. He pointed out that when people focus too much on a specific month being negative, it often doesn’t turn out that way. Cramer also mentioned that despite this expectation, the market had been up significantly, making last week’s market behavior seem unusual.
“Well, it’s funny. You talked about September being a bad month last week, so maybe we get there in a roundabout way. I know that when you single out a month, that’s often when it doesn’t happen. But I also know that we’re up big, and last week seemed odd.”
Our Methodology
For this article, we reviewed a recent episode of Jim Cramer’s Squawk on the Street and his post on the key things to watch in the stock market for Monday. We selected ten stocks that he mentioned and included information on hedge fund sentiment for each. The stocks are ranked by the number of hedge funds that own them, from lowest to highest.
At Insider Monkey we are obsessed with 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 275% since May 2014, beating its benchmark by 150 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 Investors: 108
Jim Cramer notes that Advanced Micro Devices Inc. (NASDAQ:AMD) is acquiring server maker ZT Systems for $4.9 billion in cash and stock. This deal will boost Advanced Micro Devices Inc. (NASDAQ:AMD)’s capabilities in server-scale solutions, which are vital for AI computing, helping it compete better against NVIDIA Corporation (NASDAQ:NVDA). (see 33 Most Important AI Companies You Should Pay Attention To).
“Advanced Micro Devices announced a $4.9 billion cash-and-stock acquisition of server maker ZT Systems. The deal should help the chipmaker in its battle with fellow Club holding Nvidia because server-scale solutions are increasingly important in the age of AI computing.”
Advanced Micro Devices Inc. (NASDAQ:AMD) is set for significant growth due to its strong range of products, including Ryzen CPUs, Radeon GPUs, and EPYC server processors. Advanced Micro Devices Inc. (NASDAQ:AMD) has gained substantial market share in both consumer and enterprise sectors by delivering competitive performance, energy efficiency, and innovative technology. Advanced Micro Devices Inc. (NASDAQ:AMD)’s EPYC processors are particularly notable for making strides in the data center and server markets, challenging Intel’s long-time dominance and winning major clients like Google and Microsoft.
Advanced Micro Devices Inc. (NASDAQ:AMD)’s focus on next-generation technologies, such as its Zen microarchitecture and RDNA graphics architecture, keeps it at the cutting edge. With the semiconductor industry booming due to increased demand for high-performance computing, gaming, and artificial intelligence, Advanced Micro Devices Inc. (NASDAQ:AMD)’s advanced products and technological leadership further boost its growth potential.
Overall AMD ranks 2nd on our list of the best stocks to buy according to Jim Cramer. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that under the radar 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 more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
