Advanced Micro Devices, Inc. (AMD): Jim Cramer Shares Major Catalyst That Could Change Everything!

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Jim Cramer Warns Viewers About FOMO & Discusses These 19 Stocks.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor designer that operates in the CPU and GPU markets for personal and enterprise computing. The firm’s shares have been a standout in June as they have gained almost 30% during the month so far. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares have benefited from positive analyst commentary about its ability to compete with NVIDIA to grow its market share and increase its presence in China. Cramer’s remarks touched some of these points and mentioned the AI PC market. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s shares struggled last year as while the firm targeted the AI PC market, demand failed to materialize. Here’s what Cramer said:

“People don’t realize Sanjay [Sanjay Mehrotra, Micron’s CEO], I know that Sanjay was a bit verbose, in his answers. . .look I’ve known Sanjay for years, you can tell him after this, but I think what you have is, you have a PC market that could be exploding. And I didn’t think that. . .but it also makes sense with AMD going up every single day. Because that could be PC.”

“Lisa Su has that, she always told me that she could get these inference chips and she got them. And once you have them, you have a little bit of a dogfight.

“They don’t have anything as competitive, that’s the problem, every time you try to catch up with Jensen . . .”

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Previously, Cramer discussed Advanced Micro Devices, Inc. (NASDAQ:AMD)’s competitive ability with NVIDIA:

“Lately though, we’ve been seeing AMD, their only semi-meaningful competitor; stock’s up like 40 straight points, win[s] a lot of business. Same with Cisco, Arm Holdings. Marvell Tech. Broadcom plays a huge role in these. Vertiv makes power and cooling equipment for the data center.

CoreWeave runs data centers and rents out their computing power. Dover and Eaton supply parts of the infrastructure. Vistra Energy and Constellation Energy produce and sell electricity for the data center. GE Vernova makes the turbines for the power plants…. The data center alone has caused a huge spike in electricity demand, and the ancillary players from that anomaly are doing well too.”

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term 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.