Top 10 Growth Stocks in David Tepper’s Portfolio

6. Advanced Micro Devices Inc. (NASDAQ:AMD)

Appaloosa Management LP’s Equity Stakes: $144.95 Million

Number of Hedge Fund Holders: 96

Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures computer processors (CPUs), graphics processing units (GPUs), and related technologies. It serves various markets, including gaming, data centers, and embedded systems.

Advanced Micro Devices Inc. (NASDAQ:AMD) has significant potential as the next generation of AI models demands more computing power. Consequently, it has taken calculated steps to set itself up for long-term success while lagging behind Nvidia in the GPU market. In late 2023, AMD entered the data center GPU market with the MI300, which saw strong demand, driving its data center AI sales to over $5 billion in 2024—around 20% of its total revenue. AMD’s data center revenue nearly doubled in 2024.

With the impending $4.9 billion acquisition of ZT Systems, Advanced Micro Devices Inc. (NASDAQ:AMD) should be able to expand its data center operations. Additionally, it has promising prospects in the consumer PC central processing units (CPUs). Revenue in its customer segment increased due to the high demand for these chips by 52% last year as it capitalizes on a strong upgrade cycle in the PC market.