What Makes Advanced Micro Devices (AMD) an Investment Bet?

Macquarie Asset Management, an investment management company, released its “Macquarie Core Equity Fund” investor letter for the second quarter of 2025. A copy of the letter can be downloaded here. The US large-cap equity market surged in Q2 2025, with the S&P 500® Index rising 10.94%. The equity market’s strength was due to reduced concerns over the possibility of President Trump quickly imposing harsh tariffs. Later, the administration put a pause on the tariff implementation. In this environment, the Macquarie Core Equity Fund’s Institutional Class returned 11.94% surpassing the benchmark, the S&P 500 Index. Eighty percent of the relative performance was driven by sector selection, and individual security selection accounted for the remainder. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, the Macquarie Core Equity Fund highlighted stocks such as Advanced Micro Devices, Inc. (NASDAQ: AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -5.87%, and its shares gained 1.26% of their value over the last 52 weeks. On September 18, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $157.92 per share, with a market capitalization of $256.279 billion.

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 113 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the second quarter, up from 97 in the previous quarter. Advanced Micro Devices, Inc. (NASDAQ:AMD) achieved a record second-quarter revenue of $7.7 billion, marking a 32% increase compared to the previous year, and generated over $1 billion in free cash flow. While we acknowledge the risk and potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Advanced Micro Devices, Inc. (NASDAQ:AMD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared top stocks to watch after Federal Reserve’s rate cut. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.