Light Street Capital Returned 46% in 2023: Top 5 Picks

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

Light Street Capital’s Equity Stake: $23.14 Million
Number of Hedge Fund Holders: 110

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks that affirm Light Street Capital’s holdings in the technology sector. It operates as a semiconductor company offering microprocessors and graphics processing units. Advanced Micro Devices, Inc. (NASDAQ:AMD) estimates $2 billion in sales in 2024 as it works on a chip competing against Nvidia in the AI market.

Shares of Advanced Micro Devices, Inc. (NASDAQ:AMD) exploded 125% in 2023 as the company benefited from the artificial intelligence frenzy. Light Street Capital increased its stakes in the semiconductor company by 33% in Q3 2023 to $23.14 million. As of the end of the third quarter of 2023, 110 hedge funds tracked by Insider Monkey had stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD).

White Falcon Capital Management made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:

“It is important to note that the returns depicted above actually originated in the market turmoil of 2022 and were only realized in 2023. We assess that about 75% of the returns in 2023 were derived from just 35% of the portfolio. Notably, the technology companies we acquired in 2022 – Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon, Docebo, NU, Rover – performed exceptionally well. In hindsight, the decision to allocate to technology stocks appears straightforward; but it actually demanded courage and conviction to buy and add to these stocks during the fear and uncertainty of the 2022 bear market.

The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings, AMD Amazon.com and Converge Technology Services. AMD has worked out great for us but we must admit that it has gotten expensive. AI was not part of our original investment thesis and AMD is a great reminder of how one can get ‘lucky’ investing in quality businesses run by competent management teams (ditto for Amazon).”

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