5 Best Semiconductor Stocks According to Billionaires

In this article, we discuss the 5 best semiconductor stocks according to billionaires. To read the detailed analysis of the semiconductor industry, go directly to the 10 Best Semiconductor Stocks According to Billionaires.

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

Number of Billionaire Investors: 17

Dollar Value of Billionaire Holdings: $5.99 billion

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based company that manufactures and sells high-performance computing, graphics, and visualization technologies.

On December 6, Advanced Micro Devices, Inc. (NASDAQ:AMD) unveiled its new artificial intelligence accelerator, Instinct MI300X, which the CEO of the company called the most advanced accelerator in the industry.

On December 7, Citi reaffirmed a Buy rating on Advanced Micro Devices, Inc. (NASDAQ:AMD)’s stock with a $136 price target. The analyst pointed out that the corporation’s top customers are Meta Platforms, Inc. (NASDAQ:META) and Microsoft Corporation (NASDAQ:MSFT). The analyst further mentioned that the company’s demonstration of its  MI300 chip’s metrics outperformed that of NVIDIA Corporation (NASDAQ:NVDA)’s H100.

Artisan Partners commented on Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2023 investor letter. Here is what it said:

“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.”