In this article, we will discuss the 5 best Robinhood stocks to buy according to hedge funds. If you want to read our discussion on the macroeconomic environment, go directly to the 10 Best Robinhood Stocks to Buy According To Hedge Funds.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 89
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based company involved in the manufacturing of semiconductor products used across numerous industries.
Chris Caso at Credit Suisse resumed coverage on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock with an Overweight rating and a target price of $90 on November 15. This reflects a potential upside of 22.3% from the closing price as of November 25. The analyst anticipates Advanced Micro Devices, Inc. (NASDAQ:AMD) to gain market share in the cloud computing and server markets. Caso added that the semiconductor industry is on a continuous long-term growth trajectory, with industries like artificial intelligence and automobile driving growth. Caso thinks that all the negative developments have been incorporated into the stock price, and Advanced Micro Devices, Inc. (NASDAQ:AMD) stock offers limited downside as the multiples are trading around their lowest multi-year levels.
Baron Funds shared its outlook on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2022 investor letter. Here’s what the firm said:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is 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.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology.
Additionally, the recently closed acquisitions of Xilinx and Pensando enhance AMD’s positioning within the data center, a key growth engine for the semiconductor industry, and Xilinx specifically opens up several new growth opportunities in new end markets like industrial, automotive, and communications. The company also generates significant cash flow, giving it capital allocation optionality for further M&A and returning capital to shareholders.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) is considered one of the best Robinhood stocks to invest in by many hedge funds. Renaissance Technologies raised its stake in the company by 90% during Q3 2022.
