Was Jim Cramer Right About These 13 Stocks?

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

Number of Hedge Fund Holders: 143

When asked about Advanced Micro Devices Inc. (NASDAQ:AMD), Cramer sounded positive despite the company’s struggles at the time, noting his admiration for the CEO:

“I like AMD here. I think AMD has been in the penalty box long enough, and I’ve got to tell you, I do live in Nvidia land, but I have not lost sight of the fact that Lisa Su is one of the greatest managers of our time. Can I own both Nvidia and AMD for my Charitable Trust? I’m coming around to thinking I can.”

It’s been a tough ride for Advanced Micro Devices Inc. (NASDAQ:AMD) since then, with the stock having dropped by 44%.

Although Jim Cramer appeared less optimistic about the stock on the 5^th of February this year, he still has some hopes for the company, saying the following:

“And then you know AMD didn’t help the case. Because AMD did not do well last night. . . yeah that Citi downgrade was substantive.”

“They have a transition going on.

“You can’t [defend AMD] because it was indefensible. They basically talked about how things are going to be flat. That they don’t really have the right chips right now. They are doing very well versus Intel on the less expensive CPUs, but they kinda missed the cycle. Now they’ll catch up in the second half, but you don’t hear them in the mix. That’s the problem. Because they don’t have the right GPUs. That’s whats going on.

“[On CEO Lisa Su saying AMD delivered greater than $5 billion dollar data center revenue] Well true, but AI revenue is flat to down for the first half. And there’s going to be margin dilution. Which is why you’re seeing this. There’s an inventory build. There’s poor leverage to what they’re doing. This again cuts to you know who, I don’t need to say I anymore because I say it too much . . .NVIDIA.

“[on next month being the anniversary of stock touching $227] Well I mean there was a time, look she was putting up, Lisa Su was putting up very big numbers. She is. Uh took about five billion dollar projections, she’s making that. But what most people say is, wait a second, this a halcyon time for what she makes, the GPUs, and she’s not delivering.”

“But look I think she’ll be back. They’re making a lot of money. But it’s fallen very much out of favor. And you got a downgrade today, and I just feel that people just say, you know what, NVIDIA won. NVIDIA won another round and the long knives are out for NVIDIA we’re waiting to hear what they’re going to do with China, we know that there are a lot of people who say that Amazon’s going to talk about more custom chips. Maybe that’s Broadcom. But Amazon, so far is not using AMD GPU. And that was what the customer they really needed and we don’t see it.”