12 Stocks Jim Cramer Talked About

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

Number of Hedge Fund Holdings: 115

Chip designer Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares were dealt a hefty blow earlier this week when closed down by a massive 17%. The dip came after the firm’s fourth quarter earnings report. While Advanced Micro Devices, Inc. (NASDAQ:AMD) reported $10.27 billion in revenue and $1.53 in adjusted earnings to beat analyst estimates of $9.67 billion and $1.32, media reports suggested that even though its first quarter guidance of $9.8 billion in revenue beat analyst estimates of $9.38, it was lower than expectations held by some quarters. Following the earnings, Benchmark reiterated a $325 share price target and a Buy rating for Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares. The financial firm outlined that the chip company’s deal with OpenAI and other partnerships represented tailwinds in the form of future revenue opportunities. Cramer also commented on the strong demand for AI chips and highlighted a key factor for Advanced Micro Devices, Inc. (NASDAQ:AMD)’s products:

“AMD, I thought that Lisa Su basically said, look the second half is going to be good, the first quarter was not outrageously strong so to speak. But the stock’s barely down. The stock’s barely down.

“I would tell you, that the second half, because Lisa Su’s chips have more memory, than NVIDIA’s. When you listen to all these quarters, of these former Mag 7, they all need memory, they all need compute. Now I was surprised to see how much memory the next generation AMD chip has versus the NVIDIA.”