2. Advanced Micro Devices Inc. (NASDAQ:AMD)
Number of Hedge Fund Investors: 108
Jim Cramer holds Lisa Su of Advanced Micro Devices Inc. (NASDAQ:AMD) in high regard and points out that the charitable trust owns shares in both AMD and another major company, suggesting there’s no need to choose between them. He acknowledges the unpredictable nature of the market, noting that significant changes can occur in just a couple of days.
“I think Lisa Su from AMD is just terrific too. It doesn’t have to be either/or because the charitable trust owns both. But, you know what? In two days, anything can happen—that’s how crazy this market is.”
Advanced Micro Devices Inc. (NASDAQ:AMD) presents a strong investment opportunity due to its leadership in advanced technology and impressive financial performance. Advanced Micro Devices Inc. (NASDAQ:AMD) has significantly increased its market share with its Ryzen and EPYC processors, which offer exceptional performance and value. Recent innovations, such as the Ryzen 7000 series and EPYC Genoa processors, highlight Advanced Micro Devices Inc. (NASDAQ:AMD)’s commitment to pushing the boundaries of high-performance computing. This has allowed Advanced Micro Devices Inc.(NASDAQ:AMD) to gain traction in both consumer and data center markets, challenging established competitors and attracting major tech companies and cloud providers.
The rising demand for data center solutions and AI applications further boosts Advanced Micro Devices Inc. (NASDAQ:AMD)’s prospects. Its EPYC processors are particularly well-suited for these high-growth areas, offering superior performance and efficiency. Strategic partnerships with prominent companies like Microsoft and Sony, along with contracts with various cloud service providers, expand Advanced Micro Devices Inc. (NASDAQ:AMD)’s market reach and drive demand for its products.
Strong financial results, with Q2 2024 revenue reaching $6.8 billion—up 12% from the previous year—demonstrate the company’s solid financial health and support for continued investment in research, development, and growth. These factors collectively make Advanced Micro Devices Inc. (NASDAQ:AMD) a compelling investment with significant potential for ongoing success and market leadership.
Alger Spectra Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major global supplier of PC microprocessors and graphics processors to computing original equipment manufacturers (OEMs). The company’s product range spans desktops, notebooks, servers, graphics, and embedded/semi-custom chips. AMD operates in a large addressable market, covering areas such as PCs, servers, high-end gaming, and deep learning. Additionally, AMD has introduced competitive AI technologies, including powerful accelerators poised to capture a share in a market worth several hundred billion dollars.
During the quarter, the company reported fiscal first-quarter operating results that met analyst estimates, with strengths in data center GPUs and server CPUs offsetting weaknesses in their gaming and embedded businesses. Moreover, management raised their fiscal second-quarter revenue guidance, albeit slightly below consensus estimates, where they expected double digit growth in data center revenues, while projecting a decline in their gaming segment, driven by weaknesses in both desktop GPUs and Semi-Custom Systems-on-a-Chip (SoC).
While weaker-than-expected near-term results weighed on shares during the quarter, we believe the company is positioning itself to potentially benefit from long-term growth in AI infrastructure spending. Specifically, the company continues to gain server CPU market share, which could potentially accelerate as traditional compute deployments begin to recover.”
