We recently published a list of Billionaire Bruce Kovner’s 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 stock picks with huge upside potential.
Bruce Kovner founded Caxton Associates in 1983, a New York-based trading and investment firm that was formed as the successor to Caxton Associates LP. Caxton is a wholly owned subsidiary of Caxton Europe LLP. Kovner retired in 2011, and his firm returned an average of 21% per year between its inception in 1983 and 2011. With his long-time partner Peter D’Angelo in charge of Caxton’s operations, Kovner concentrated on trading the financial and commodity markets based on his views of macroeconomic conditions. He is featured in Jack Schwager’s book “Market Wizards” as one of the greatest traders of all time. Here’s one of Kovner’s popular trading quotes from the book:
“Risk management is the most important thing to be well understood. Undertrade, undertrade, undertrade is my second piece of advice. Whatever you think your position ought to be, cut it at least in half.”
A lot of individuals enter financial markets with the notion that successful investors know something that the common man does not. However, the truth is that experienced investors understand and accept the inherent uncertainty of market outcomes. So they focus on the interplay of probability and the balance between risk and reward. Kovner also believes in the process of adaptation and adjustment. Here’s what he had to say about dealing with highly uncertain markets:
“First, I have the ability to imagine configurations of the world different from today and really believe it can happen. I can imagine that soybean prices can double or that the dollar can fall to 100 yen. Second, I stay rational and disciplined under pressure.”
Kovner dropped out of Harvard University and floated around a few aimless jobs before finding his love for trading. He also founded the Kovner Foundation, which manages his philanthropic activities. Today, Kovner is chairman of CAM Capital (Caxton Alternative Management Capital), which invests his private assets. Caxton Associates has 13 clients and discretionary assets under management (AUM) of $4.18 billion, according to the firm’s Form ADV dated 15 January 2025. The last reported 13F filing for Q4 2024 included $3.18 billion in managed 13F securities and a top 10 holdings concentration of 63.18%.
Our Methodology
To compile the list of billionaire Bruce Kovner’s 10 stock picks with huge upside potential, we sifted through Q4 2024 13F filings of Caxton Associates from Insider Monkey. From these filings, we checked the upside potential from CNN for the top 50 stock picks and ranked the stocks in ascending order of their upside potential. We have also added Caxton Associates’ stake in each stock as well as the broader hedge fund sentiment for it.
Note: All data was sourced on May 7.
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 373.4% since May 2014, beating its benchmark by 218 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)
Caxton Associates’ Stake: $132.87 million
Number of Hedge Fund Holders: 96
Average Upside Potential as of May 7: 31.00%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments. These are the Data Center, Client, Gaming, and Embedded segments. It offers AI accelerators, x86 microprocessors, and GPUs as both standalone devices and also incorporated into accelerated processing units, chipsets, and data center applications.
On May 5, Bank of America reiterated a Neutral rating on the stock with a $105 price target. Despite expectations of a strong quarter backed by server CPU sales and gains in desktop PC market share, AMD is set to face major challenges in the upcoming quarters. In particular, China’s restrictions on AMD’s MI308 products are anticipated to lead to a sales headwind and a decline in gross margins for the second quarter.
Wedbush’s Matt Bryson also pointed out that AMD is still gaining market share in the compute sector, both in servers and PCs. The analyst believes that while Advanced Micro Devices, Inc. (NASDAQ:AMD) is already outperforming in desktop computers, there is still potential for growth in the notebook segment in 2025. In Q4 alone, the revenue increased by 24% to a record $7.7 billion due to record quarterly data center and client segment revenue.
Overall, AMD ranks 7th on our list of billionaire Bruce Kovner’s stock picks with huge upside potential. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that AI stocks hold great promise for delivering high 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 the 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.
