Jim Cramer Says US Has To Give Some Chips To China & Discusses These 10 Stocks 

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

Number of Hedge Fund Holders In Q1 2025: 97

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor designer that competes with Intel and NVIDIA in the CPU and GPU markets. It is the smaller rival for both these firms, and a major success has been its ability to eat away Intel’s data center market share over the past couple of years due to the latter’s manufacturing woes. In the AI wave, Advanced Micro Devices, Inc. (NASDAQ:AMD) has been a distant second to NVIDIA and has failed to capture a major portion of the market. The firm’s shares have gained 6% year-to-date primarily on the back of a 10% jump in June. This jump came after analysts at Piper Sandler opined that the firm’s GPU business could recover in the fourth quarter of this year. As for Cramer, he wondered whether the US was open to offering Advanced Micro Devices, Inc. (NASDAQ:AMD)’s GPUs to China as part of concessions during trade talks:

“I continue to think that when I look at Advanced Micro stock going up, that Advanced Micro has a GPU like NVIDIA. Not as powerful. Maybe that’s who they’re offering.”

Ahead of the analyst upgrade, Cramer discussed Advanced Micro Devices, Inc. (NASDAQ:AMD) in detail:

“So traders say if I can’t make money after Broadcom reporting a great quarter, the playbook says time to move into the lower quality, cheaper stocks that are less likely to disappoint or should never have been down to begin with. I understand the sentiment, but the problem is that these stocks have already rallied pretty hard, too…I saw some upgrades for AMD…. They’ve moved, especially AMD by the way, on speculation it might be involved with any China deal. Rare earth materials for us, AMD chips for them.

Now, this kind of rotation could be a good one. The stocks that are rallying are excellent. They may be just playing catch-up. It’s a heavily broadening out of the winners, right? Remember when it was just the Mag Seven? We’ve come a long distance, but what comes after this could be treacherous. I’ve seen the end of rallies, and they often take up the laggards last. After it happens, if we have good news, everything’s fine. However, if there’s any degradation in the numbers, it could get very ugly. Right now we’re fine… I’ve always liked AMD, as you know.”