We recently published a list of Unknown Billionaire Phill Gross’ 10 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other unknown billionaire Phill Gross’ stock picks with huge upside potential.
Phillip “Phill” Gross is a seasoned investor and influential figure in the world of institutional asset management, best known as the Co-founder, Managing Director, and Healthcare Portfolio Manager of Adage Capital Management. While Robert Atchinson, his longtime collaborator and fellow Co-founder, serves as the firm’s Portfolio Manager, Gross’s leadership and strategic vision have played a foundational role in shaping Adage’s long-term investment philosophy and reputation. The two met in the mid-1980s while working as Harvard University’s endowment analysts. Their professional synergy led them to leave Harvard Management Company in the 1990s, following public scrutiny over performance-based bonuses. With the backing of an initial $1.8 billion investment from Harvard and an agreement for the university to receive 10% of the firm’s earnings, they launched Adage Capital Management in 2001 alongside an 18-person team.
Under Gross’s co-leadership, Adage has become a key player in managing assets for prominent institutional clients such as Harvard University, Dartmouth College, Northwestern University, the American Red Cross, and the Getty Foundation. The firm specializes in long/short equity strategies guided by fundamental analysis and engages in risk arbitrage and event-driven opportunities when market conditions are favourable. Adage Capital Management and its predecessor, the Select Equity Group at Harvard Management Company, have consistently outperformed broader market benchmarks by an average of 3.5% over the past 15 years. This is a testament to the disciplined, research-driven investment framework that Gross helped instill.
Gross himself brings a deep background in healthcare investing, having served for nearly two decades at Harvard Management Company in various roles, including Healthcare and Retail Analyst, Equity Research Director, and Partner. His academic credentials include a B.S. in finance and economics (1982) and an M.S. in investments (1983), both from the University of Wisconsin. He remains actively engaged with his alma mater, serving on the advisory boards of the Steve Hawk Center for Applied Securities Analysis and the Nicholas Center for Applied Corporate Finance. In recognition of his professional accomplishments and ongoing contributions, Gross received the Distinguished Alumnus Award from the University of Wisconsin Business School in 2006.
Beyond finance, Gross is a committed philanthropist. He co-founded Strategic Grant Partners, an organization focused on driving systemic change in education and family services throughout Massachusetts. He also serves as Vice President of the Board of Directors for Youth Enrichment Services, a nonprofit that provides urban youth with outdoor recreational experiences. In addition, he holds board positions with the U.S. Ski and Snowboard Association, where he is Vice-Chair of the Investment Committee, and with the T2 Foundation.
Adage Capital Management’s latest 13F filing for Q4 2024 reported $57.19 billion in managed securities, with the top 10 holdings comprising 31.7% of the total portfolio, demonstrating a strategic yet diversified approach to asset allocation. While Atchinson oversees day-to-day portfolio management, Gross’s enduring influence and expertise, particularly in healthcare investing, continue to shape the firm’s long-term success and institutional credibility.
Our Methodology
We searched through Adage Capital Management’s Q4 2024 13F filings to identify unknown billionaire Phill Gross’ stock picks with the highest upside potential. We compiled the equities with upside potential higher than 34% at the time of writing this article and discussed why they stood out as strong potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders as of Q4: 96
Adage Capital Management’s Equity Stake: $170.35 Million
Upside Potential as of May 2: 38.84%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading American multinational technology company headquartered in Santa Clara, California, with substantial operations in Austin, Texas. As a fabless semiconductor company, AMD specializes in designing and developing high-performance computing components, including central processing units (CPUs), graphics processing units (GPUs), field-programmable gate arrays (FPGAs), and system-on-chip (SoC) solutions. The company serves diverse sectors, ranging from gaming and embedded systems to data centers and artificial intelligence (AI). AMD’s innovative hardware plays a critical role in powering both consumer devices and enterprise-scale computing infrastructure.
In its financial results for the fourth quarter and full year of 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) reported significant achievements across several business segments. Fourth-quarter revenue reached a record $7.7 billion, with a GAAP gross margin of 51%, operating income of $871 million, and net income of $482 million. Diluted earnings per share were $0.29. On a non-GAAP basis, the company delivered even stronger results, including a 54% gross margin, $2.0 billion in operating income, $1.8 billion in net income, and $1.09 in diluted earnings per share.
CEO Dr. Lisa Su described 2024 as a transformative year for the company, marked by accelerated growth in AMD’s Data Center segment. Annual revenue in this division nearly doubled, fueled by the rapid adoption of EPYC processors and over $5 billion in AMD Instinct accelerator revenue. In Q4 alone, Data Center revenue soared to a record $3.9 billion, reflecting a 69% year-over-year increase. The Client segment also saw robust performance, with quarterly revenue rising 58% year-over-year to $2.3 billion, driven by strong demand for Ryzen processors. Conversely, the Gaming segment experienced a 59% decline to $563 million, attributed to a drop in semi-custom revenue. The Embedded segment posted $923 million in revenue, a 13% decline amid fluctuating market demand. Looking ahead to 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) anticipates continued growth, leveraging the strength of its product portfolio and increasing demand for adaptive and high-performance computing solutions.
Artisan Global Opportunities Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:
“Among our top detractors were Advanced Micro Devices, Inc. (NASDAQ:AMD), Novo Nordisk and Danaher. Shares of AMD declined in Q4, which capped off a frustrating year of stock performance that did not seem to match its fundamental progress. Regarding its AI opportunity, the company accomplished everything we had hoped for over the past 18 months. It successfully entered the market with its MI300 graphic processing unit (GPU) chip and raised its latest 2024 AI-related revenue guidance to $5.0 billion from $4.5 billion. However, its shares have experienced weakness for two primary reasons. First is the emergence of custom AI accelerator chip solutions from Broadcom and Marvell (a Q4 buy) as alternatives to the GPU solutions from NVIDIA and AMD. While this competitive threat is more significant than we had initially anticipated, we continue to be excited about AMD’s opportunity moving forward. We believe the AI-related market will grow to $400 billion–$500 billion in the next three years (compared to $100 billion in 2024). We expect that NVIDIA’s market share will fall from ~90%in2024to60%–80%overthesameperiodasitcedes market share to AMD (from5%in2024to10%–20%) and custom accelerator solutions (from 5% in 2024 to 10%–20%). Under these assumptions, we expect AI GPUs to double AMD’s total 2024 sales. Second is cyclical struggles within other areas of its business. While data center revenues have more than doubled over the past two years, the gaming business is down more than 60%, and embedded (specialized chips found in various industrial and consumer products) is down20%.As its data center business continues to grow and the cyclical areas of its business bounce back, we expect AMD to deliver stronger earnings growth.”
Overall, AMD ranks 5th on our list of unknown billionaire Phill Gross’ stock picks with huge upside potential. While we acknowledge the potential of these stock picks, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.