Jim Cramer on AMD and Other Stocks

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

Number of Hedge Fund Holders: 108

Talking about Advanced Micro Devices, Inc. (NASDAQ:AMD), Cramer said:

“AMD reported a strong set of results this evening, partially fueled by demand for their AI chips, the only ones that come close to Nvidia’s. However, they also gave you some not-so-hot guidance for the current quarter because they’re worried about supply constraints. The demand for these chips is off the charts, but they may not be able to make enough of them because there’s only so much high-end semiconductor capacity worldwide. Now to me, silly little me, that seemed like a high-quality problem. But it’s a problem nonetheless, which is why the stock got slammed in the after-hours trading.”

Advanced Micro Devices (NASDAQ:AMD) has emerged as a prominent company within the semiconductor sector, particularly gaining favor among personal computer manufacturers. On October 29, the company released its third-quarter financial results, which met market expectations for earnings while exceeding sales projections.

In this quarter, it reported non-GAAP EPS of $0.92, accompanied by revenues of $6.82 billion. This revenue surpassed Wall Street’s average forecast of $6.71 billion, indicating a stronger-than-anticipated sales performance during this period. However, despite these positive figures, management’s forward guidance raised concerns among investors, reflecting a cautious outlook.

During Advanced Micro Devices’ (NASDAQ:AMD) earnings call, CEO Lisa Su addressed the current supply chain situation, stating that while the environment remains challenging, the company has effectively managed its capacity throughout the supply chain. Su emphasized that while the company expects continued tightness in supply in the coming quarters, there are plans for significant growth leading into 2025.