5 Strong Buy Stocks to Invest in Now According to Reddit

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

Number of Hedge Fund Holders: 83

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American multinational semiconductor company. Redditors believe in the long-term potential of Advanced Micro Devices, Inc. (NASDAQ:AMD), and since the stock is already down 35% year to date as of August 1, they think it will bounce up a little better even despite a recession. Reddit investors also believe that the company is one of the best boutique PC gamers in the market and once it starts making GPUs, it will possibly outperform NVIDIA Corporation (NASDAQ:NVDA). 

On July 20, Deutsche Bank analyst Ross Seymore reiterated a Hold rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) and lowered the price target on the shares to $85 from $115. The current “purgatory” stage of the semiconductor cycle prevails heading into the Q2 earnings season, the analyst told investors. Despite expecting positive activity across most of the sector in Q2 and Q3, the analyst said that investors appear to be waiting for a “widespread deck-clearing” guide-down before buying semi stocks again.

According to Insider Monkey’s data, 83 hedge funds were long Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q1 2022, up from 69 funds in the earlier quarter. Ken Fisher’s Fisher Asset Management featured as the leading stakeholder 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.”