Top 10 Semiconductor Stocks to Buy Now

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

No. Of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) offers a wide range of semiconductor products, including CPUs, GPUs, FPGAs, and adaptive SoCs, for data-center, client, gaming, and embedded markets. Its Q4 2024 quarterly earnings call revealed revenue up 24% YoY to $7.7 billion, and EPS improving by 42% YoY to $1.10.

Recent news related to the introduction of an AI out of China, and news of potential US tariffs on China plays a cyclical role on Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock price, but a strong long-term view. The company’s recent results are a testament to the company’s successful ability to penetrate the AI sector.

Advanced Micro Devices, Inc. (NASDAQ:AMD) EVP and CFO Jean Hu spoke at the Morgan Stanley Global TMT Conference:

“We actually ramped up MI300 really quickly and exceeded $5 billion. Both the MI300 and our ROCm software right now are powering some of the most complicated AI models, right, at Microsoft, at Meta, at scale. So, it’s a lot of progress we made, and the team executed flawlessly, actually, to ramp the production of MI300.

At the same time, we also made tremendous progress in our overall hardware roadmap and the software stack. If you think about the hardware side, not only we introduced the MI325, we also put in this year, MI350. And next year, we’re going to be on track for MI400. On the software side, we made a lot of progress with the ROCm to really support all different applications and the workload. We also acquired ZT Systems to build our system expertise to build rack level and class level designs.

So, overall, the progress made and our engagement with the customers also broadened quite significantly. Not only we add new customers and with existing customers, the engagement has always been about multi-generational. It’s not just about generating MI300 revenue. It’s about the discussions for MI350 and the MI400, how we help our customers to build the clusters to provide a better TCOs.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) has seen a decline in share price over the past year from $170.94 to the current value of $100.31. This is significant for investors seeking to get in when they feel they may have missed an opportunity a year ago, with a consensus of the average twelve month trading share price to be $149.96, representing an upside of 38.9%.