5 Best Data Center Stocks to Buy Now

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

Market Cap as of March 27: $154.84 Billion
Number of Hedge Fund Holders: 97

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates in four segments: Data Center, Client, Gaming, and Embedded. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s data center business saw strong growth in fiscal 2022, with revenue rising by 63% to $6 billion and operating income increasing by 86% to $1.8 billion. This segment is expected to continue expanding in 2023. As a result, the company stands fourth on our list of best data center stocks to buy now.

Advanced Micro Devices, Inc. (NASDAQ:AMD) provides data center solutions including the AMD EPYC processor line optimized for virtualization, cloud computing, and HPC workloads, and AMD Instinct Accelerators for machine learning and HPC. AMD ROCm is an open-source software stack for high-performance computing workloads. These solutions provide high performance, security, and scalability to help enterprises meet modern data center demands.

Citadel Investment Group is the company’s largest shareholder, with shares worth $424.78 million.

Here is what Baron Funds had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2022 investor letter:

“During the quarter, we added to our position in Advanced Micro Devices, Inc. (NASDAQ:AMD), a global fabless semiconductor company focusing on high performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers. While the company is seeing weakness in its PC business in the short term, we continue to believe AMD will be one of the lead beneficiaries of growing data center infrastructure spending driven by expanded use cases for AI and cloud computing across its product portfolio. AMD’s largest share gain opportunity is in its data-center-server CPUs, which continue to take share from incumbent Intel given a superior total cost of ownership proposition driven by better performance per watt of energy consumption across many computing workloads. We also believe Xilinx, a recent acquisition, offers AMD diversification opportunities through which it can benefit from the broader proliferation of semiconductors into all aspects of the industrial and consumer economies.”