5 Best Most Active Stocks To Buy Now

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

Average 3-Month Volume: 78.95 million

Number of Hedge Fund Holders: 89

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a Santa Clara, California-based chip manufacturer involved in the designing of computer processors and graphic processing units (GPUs).

Joseph Moore at Morgan Stanley picked Advanced Micro Devices, Inc. (NASDAQ:AMD) stock as his Top Pick in the semiconductor industry on December 15. The analyst has given Advanced Micro Devices, Inc. (NASDAQ:AMD) stock an Overweight rating and a target price of $77. Experts believe that the company can experience growth from the cloud computing market and gain market share in the server business in the coming quarters.

Here’s what L1 Capital International said about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2022 investor letter:

“The share price of Advanced Micro Devices, Inc. (NASDAQ:AMD) was weak during the quarter and weakened further in early October when the pre-announced revenue was significantly below prior guidance, reflecting an acute slowdown in the PC market. Data centre related revenue grew strongly, albeit below our expectations, while gaming and embedded revenue was in line with our base case.

Geopolitical risks have increased for the semiconductor sector, with the U.S. Government announcing restrictions on the sale of certain technologies to China. Despite near term headwinds, AMD is well positioned for the medium term, with a technology lead over Intel in servers for data centres and rapidly gaining share in the PC/notebook sectors. Its gaming and embedded applications continue to grow strongly. AMD is a very capital light business, with manufacturing outsourced. After expending nearly $5b on research and development, AMD generates around $5b of free cashflow. With a net cash balance sheet, we expect management will accelerate buyback activity at a share price well below fair value.

The share price of our more cyclical businesses, in particularly the building products companies which have exposure to the U.S. residential, repair and renovation and infrastructure sectors, were broadly flat for the quarter. Rapidly escalating mortgage rates and rapidly reducing affordability will have a pronounced negative effect on near term new residential construction activity. We believe these cyclical pressures are well understood and are more than reflected in current share prices. Overall, we strongly believe share prices are overly reflecting near-term challenges and our portfolio of companies are now meaningfully undervalued.”