Jim Cramer Recently Discussed These 7 Stocks

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

Number of Hedge Fund Holders: 107

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

“… The other chip maker that’s been trading like a loser is AMD, another Charitable Trust holding. Now this is different. While AMD is clearly far, far behind Nvidia in making these ultra-fast GPUs, it was seen as, really the only chip maker that could even come close. But the fact that these hyperscalers are quite interested in custom silicon solutions from the likes of Broadcom and Marvell has investors wondering if these ancillary chips might actually be the next best option, not AMD and that’s a big reason why the stock’s down 12% since Marvell reported two weeks ago and it’s now down 45% from its highs in March. So that’s what’s happened. But what are we doing about it?… Even after it’s come down, I gotta trim something. It’s just not getting the kind of traction I thought it would with… AI chips. if we got Broadcom and Nvidia, we don’t need to keep sticking our necks out on AMD. This is a new theme. We just aren’t seeing the demand we thought we would for AMD’s AI chips and we haven’t seen a big move into AI PCs either, which they also have a big stake in.”

Advanced Micro Devices (NASDAQ:AMD) is a global semiconductor company that designs and supplies microprocessors, graphics processing units, chipsets, and embedded processors. During the earnings call for the third quarter, CEO Lisa Su addressed some of the ongoing challenges related to the supply chain. She emphasized that supply constraints have impacted the broader industry and acknowledged that the supply tightness is expected to persist in the coming quarters.

Additionally, in December, an executive from Amazon revealed that Amazon Web Services (AWS) was “not yet seeing” significant demand for the company’s MI300 lineup of AI GPUs. It should be noted that for the fourth quarter, the company updated its full-year GPU data center revenue forecast, increasing it from over $4.5 billion to more than $5 billion.

Looking ahead to 2025, Advanced Micro Devices (NASDAQ:AMD) remains positive about ongoing growth in the data center sector, fueled by significant investments from companies seeking to expand their infrastructure for AI workloads.