10 Tech Stocks That Trump’s Fellow Republican Bought Amid Market Rout

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

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. is a semiconductor company that operates through Embedded, Data Center, Gaming, and Client segments. It offers a range of products, including artificial intelligence (AI) accelerators, x86 microprocessors, and other products. The stock has fallen 32.62% in the last 6 months.

Though the semiconductor industry is well-positioned for double-digit growth in 2025, investors’ confidence has been shaken because of the recent potential economic downturn in the US and issues over tariffs. JP Morgan recently estimated a 10% hit to the company’s earnings following export restrictions when selling chips to China:

“Assuming a 45-55% gross margin on the $800M inventory charge, we estimate the revenue impact to AMD is $1.5-$1.8B on a total of $8B in GPU revenues this year and $16B in datacenter revenue, or about 10% of the datacenter revenue.”

In the previous quarter, the company reported that its data center revenue grew at a solid annual growth rate of 69%. With a strong balance sheet and  healthier cash flow generation, the company’s turnaround prospects remain attractive according to the management:

“Without guiding for a specific number in 2025, one of the comments that we made is we see this business growing to tens of billions, as we go through the next couple of years. And that gives you a view of the confidence that we have in the business and particularly our road map is getting stronger with each generation, right?”