5 Best Augmented Reality Stocks To Invest In

This article presents an overview of the 5 Best Augmented Reality Stocks To Invest In. For a detailed overview of such stocks read our article, 17 Best Augmented Reality Stocks To Invest In.

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

Number of Hedge Fund Investors: 110

Advanced Micro Devices Inc. (NASDAQ:AMD) plays a critical role in the AR industry by providing chips that power immersive experience in many important AR and VR device. Back in 2021, Magic Leap, which makes head-mounted augmented reality display devices, announced that it was partnering with Advanced Micro Devices Inc. (NASDAQ:AMD)  according to which the chipmaker will  make semi-custom SOC for Magic Leap. Recently, Advanced Micro Devices Inc. (NASDAQ:AMD) said it is helping Magic Leap make devices that help firefighters get advanced training to tackle high risk scenarios using augmented and virtual reality without ever putting them in harm’s way.

Artisan Global Opportunities Fund made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2023 investor letter:

“Among our top contributors were Advanced Micro Devices, Inc. (NASDAQ:AMD), NU Holdings and Netflix. AMD’s data center CPUs are used in the cloud service provider (CSP) servers. In addition to the broader secular tailwind from cloud adoption, the company has a performance and pricing advantage over Intel, which we believe will enable it to continue capturing market share. However, the recent stock price rally was due to growing excitement around the company’s AI exposure. It will launch its new MI300 graphics processing unit (GPU) chip later this year to compete against the dominant market leader NVIDIA. Similar to its approach that won market share from Intel within the CPU market, AMD’s product will aim to provide similar performance at a more attractive price. AMD is already working with Microsoft and Meta, while Amazon publicly stated that it is evaluating AMD’s inferencing chips. Using assumptions around the total GPU market size, potential market share gains and price points, our research indicates this could be a $20 billion opportunity for AMD. That would nearly double its revenue. While the company has not historically missed many deadlines, there is execution risk as it works to manufacture and distribute these complex chips at scale, which, combined with an elevated valuation after the stock’s strong performance run, led us to trim the position.”