5 Stocks That Will Suffer If China Invades Taiwan

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

Number of Hedge Fund Holders: 83

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a California-based semiconductor company that operates in two segments – Computing and Graphics, and Enterprise, Embedded and Semi-Custom. Advanced Micro Devices, Inc. (NASDAQ:AMD) has global operations, and its assembly and test manufacturing facilities are located in Malaysia and China. If China invades Taiwan, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s manufacturing line could be significantly impacted as tensions between the US and China escalate. 

On August 3, JPMorgan analyst Harlan Sur lowered the price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $120 from $140 and kept a Neutral rating on the shares. The analyst said that despite Advanced Micro Devices, Inc. (NASDAQ:AMD)’s optimistic outlook on the second half of the year after a strong first half and a reaffirmation of its full year guidance, he slashed forward estimates to factor in slowing global demand that he thinks will pose challenges to the global PC and server total addressable market. Although Advanced Micro Devices, Inc. (NASDAQ:AMD) is still achieving significant processor market share, growth rates are beginning to get impacted as macro issues start to strengthen heading into 2H22, contended the analyst.

According to Insider Monkey’s data, 83 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of March 2022, up from 69 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management featured as the leading position holder in the company, with 24.3 million shares worth $2.6 billion. 

Here is what Carillon Tower Advisers has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2021 investor letter:

“Advanced Micro Devices (AMD) supplies semiconductor chips for central processing units (CPUs) and graphic processing units (GPUs). The firm has been gaining share against its primary competitor in the datacenter server CPU space, as this rival has been unable to match the design and manufacturing capabilities of AMD and its partners. Investors are also looking forward to the closing of the previously announced merger with a semiconductor manufacturer that is another one of the portfolio’s holdings. The merger will increase AMD’s capabilities in the Field Programmable Gate Array (FPGA) chip space, and the combined company should possess the potential to win additional market share in the datacenter chip market.”