Jim Cramer’s Game Plan: 15 Stocks in Focus

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

Number of Hedge Fund Holders: 107

Cramer wondered if Advanced Micro Devices, Inc. (NASDAQ:AMD) has seen demand increase in the aftermath of the DeepSeek launch.

“AMD’s been quiet of late. Now I wonder if the chip maker has landed some big wins because, in the wake of this DeepSeek affair, which proved AI outfits can do more with less computing power, AMD’s cheaper GPUs suddenly look a lot more attractive versus NVIDIA’s best-of-breed chips. Alright, that’s my thesis. Now, let’s see if it’s true.”

Advanced Micro (NASDAQ:AMD) is a worldwide semiconductor company that designs and provides microprocessors, graphics chips, chipsets, and embedded processors. Interestingly, when Cramer discussed the company in December 2024, he commented:

“… 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.”