White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The White Falcon portfolio returned 5.6% (net of fees) in Q4 2025, resulting in a yearly return of 28.4%. The year has been notable, particularly with the “tariff tantrum” in April 2025 that saw markets drop nearly 20%, now fading into the past. Overall, the portfolio performed well, with only a few companies affecting a solid majority of positive results. The White Falcon portfolio consists of 20-25 carefully selected stocks that align with its quality and valuation standards, focusing on generating positive absolute returns adjusted for risk over a full market cycle. The portfolio’s preferred metric, the rolling three-year annualized return, currently stands at 25.9% CAGR, outpacing most major indices, including the S&P 500. As a long-term compounder, the firm is optimistic about its long-term prospects. The firm anticipates a significant increase in leverage associated with AI and expects major private companies to go public through IPOs. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, White Falcon Capital Management highlighted stocks like Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company that designs and manufactures of AI accelerators, microprocessors, and graphics processing units. On March 05, 2026, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $199.45 per share. One-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -4.31%, and its shares gained 98.83% over the past 52 weeks. Advanced Micro Devices, Inc. (NASDAQ:AMD) has a market capitalization of $325.185 billion.
White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2025 investor letter:
“The top 5 positions for the White Falcon portfolio are precious metal royalty companies, AMD, NFI Group, EPAM, and Nu Holdings. Advanced Micro Devices, Inc. (NASDAQ:AMD) designs a broad range of digital semiconductors serving PCs, gaming consoles, and data centers, including the rapidly expanding AI market. Under CEO Lisa Su, the company was pulled back from the brink of bankruptcy and reshaped into a high‑performance computing leader. Over the past decade, AMD has steadily taken market share from Intel and emerged as a credible No. 2 in GPUs behind Nvidia. Given AMD’s volatility, we initiated a position in November 2022 and added to it again in April 2025. Management has guided to approximately $10 in Earnings per share (EPS) for FY2027E and more than $20 in EPS by 2030E. If the company delivers on these targets, then it should be a $400+ stock in a few years which is roughly 75% higher than current levels.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 20th position on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 132 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the fourth quarter, up from 115 in the previous quarter. Q4 2025 results show Advanced Micro Devices, Inc. (NASDAQ:AMD) generated $10.3 billion in revenue, representing 34% growth year over year. 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 a list of best IT stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q4 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.
