In this article, we will look at the 5 tech stocks to consider for the long term. If you want to explore similar stocks, you can also take a look at Long-Term Stock Portfolio: 11 Tech Stocks to Consider.
5. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 87
Wall Street is bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) and the stock has a consensus Buy rating. This September, Morgan Stanley analyst Joseph Moore adjusted his price target on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $95 from $102 and reiterated a buy-side Overweight rating on the shares. Over the past three months, the stock has received 19 Buy ratings and 7 Hold ratings from Wall Street analysts and has an average price target of $117, which implies an upside of 79% from current levels.
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a profitable and cash-rich tech company and one of the best long-term stocks to invest in. The stock has a trailing twelve-month operating margin of 16.8% and has free cash flows of $3.3 billion. The stock is also low-risk and according to the company’s balance sheet, as of June 30, Advanced Micro Devices, Inc. (NASDAQ:AMD) has a debt-to-equity ratio of 0.05.
Insider Monkey found 87 hedge funds that were bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of Q2 2022 and held stakes worth $4.84 billion in the company. As of June 30, Fisher Asset Management is the top shareholder in Advanced Micro Devices, Inc. (NASDAQ:AMD) and has stakes worth $1.92 billion in the company.
Here is what Baron Funds had to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second-quarter 2022 investor letter:
“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.
AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology.
Additionally, the recently closed acquisitions of Xilinx and Pensando enhance AMD’s positioning within the data center, a key growth engine for the semiconductor industry, and Xilinx specifically opens up several new growth opportunities in new end markets like industrial, automotive, and communications. The company also generates significant cash flow, giving it capital allocation optionality for further M&A and returning capital to shareholders.”
