Jim Cramer’s 5 Best of Breed Stocks

In this article, we will take a look at the Jim Cramer’s 5 best of breed stocks. To see more such companies, go directly to Jim Cramer’s 14 Best of Breed Stocks.

5. Advanced Micro Devices Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 112

Advanced Micro Devices, Inc. (NASDAQ:AMD) was one of the tech stocks Jim Cramer labeled best of breed last year. He said that these companies were seeing selloff without any justified reasons and predicted that these companies would rebound soon.

Over the past one year Advanced Micro Devices, Inc. (NASDAQ:AMD) shares have gained about 83% over the past one year, so Jim Cramer was right about this stock.

Artisan Global Opportunities Fund made the following comment about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2023 investor letter:

“Among our top contributors were Advanced Micro Devices, Inc. (NASDAQ:AMD), NU Holdings and Netflix. AMD’s data center CPUs are used in the cloud service provider (CSP) servers. In addition to the broader secular tailwind from cloud adoption, the company has a performance and pricing advantage over Intel, which we believe will enable it to continue capturing market share. However, the recent stock price rally was due to growing excitement around the company’s AI exposure. It will launch its new MI300 graphics processing unit (GPU) chip later this year to compete against the dominant market leader NVIDIA. Similar to its approach that won market share from Intel within the CPU market, AMD’s product will aim to provide similar performance at a more attractive price. AMD is already working with Microsoft and Meta, while Amazon publicly stated that it is evaluating AMD’s inferencing chips. Using assumptions around the total GPU market size, potential market share gains and price points, our research indicates this could be a $20 billion opportunity for AMD. That would nearly double its revenue. While the company has not historically missed many deadlines, there is execution risk as it works to manufacture and distribute these complex chips at scale, which, combined with an elevated valuation after the stock’s strong performance run, led us to trim the position.”