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4. Advanced Micro Devices Inc (NASDAQ:AMD)

Number of Hedge Fund Investors: 113

Vivek Arya, senior semiconductor analyst at Bank of America Securities, said in a recent program on CNBC that he is bullish on AMD and other semiconductor companies amid rising demand for compute. Arya also said he is not “worried” about the apparent “circularity” of deals in the AI industry.

“OpenAI is eating computing power like Pac-Man. You know, they have 800 million weekly active users, probably getting to a billion users by the end of the year. And this is within 3 years of them forming. It took Facebook 8 years to get to a billion users. And every one of the users that OpenAI has on their network is consuming a tremendous amount of tokens and computing capacity. So the company has to build out a lot of infrastructure, which it is doing with the help of cloud service providers, and for that it needs to partner with these leading semiconductor companies. Today, Nvidia is the incumbent. OpenAI has signed deals with Broadcom and now it has signed this deal with Advanced Micro Devices Inc (NASDAQ:AMD). But you know, it’s also important to realize the second point that OpenAI is going to be one of the many ecosystems that develops in this AI industry. You know, there’s going to be an ecosystem developed around Meta or Amazon or Google, right? The many different neoclouds that are forming. So this is going to be a broad, diversified industry with chip makers participating, which is why we are not as worried about the circularity of this. Because if you look at the total of the deals that OpenAI has signed with Nvidia and Advanced Micro Devices Inc (NASDAQ:AMD), they will probably end up being less than 5 or 10% of the overall deployment. So no, we are incredibly bullish about this buildout and I think companies like Nvidia, Broadcom, Advanced Micro Devices Inc (NASDAQ:AMD) and others are very well positioned to take advantage of it.”

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”