Jim Cramer’s Bold Predictions About These 15 AI Stocks

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

Number of Hedge Fund Holders In Q3 2024: 107

Date of Cramer’s Comments: September 10th, 2024

Performance Since Then: 20.8%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a CPU and GPU company that develops processors and GPUs for consumer and enterprise AI use cases. Since Cramer’s comments in September, its shares have lost 20.8% primarily due to the AI catalysts not materializing. While Advanced Micro Devices, Inc. (NASDAQ:AMD) offers AI chips for consumer PCs and enterprise computing, demand for the former hasn’t emerged and the latter is dominated by NVIDIA. Year-to-date, the stock is down by 6% following a weak Q4 report that disappointed on the data center front. Here is what Cramer said:

“Advanced Micro Devices, Inc. is an on-again, off-again Charitable Trust holding. By the way, we’ll be talking about it on Thursday at our monthly meeting. It’s now an “on” because we started buying some when it sold off in July. It actually began its slide in March and is now down close to 40% from its highs…”

“It’s the third-worst pullback of any chipmaker in the S&P 500. The stock is down 26% just from its lower high on July 10th. And even after rebounding a few bucks today, did you know that  Advanced Micro Devices, Inc. is down for the year? Red for the year!”

“Really,  Advanced Micro Devices, Inc.’s latest quarter was pretty good across the board. They posted modest sales and earnings beats, with better-than-expected guidance for the current quarter. The stock only jumped 4% on the news!”

“Now, Advanced Micro Devices, Inc. is expected to earn $5.45 per share next year, with that number growing to $7.24 per share in 2026. But in a few months, 2026 will be next year, at which point the stock would be selling for less than 20 times next year’s earnings. I believe in CEO Lisa Su, and I think Advanced Micro Devices, Inc. is a great buy into weakness. I’ve got to tell you, that puts it below a market multiple—and to me, that’s just wrong.”