Here’s Why Elite Hedge Funds Were Buying Advanced Micro Devices (AMD) For 2026

ARK decreased its involvement successful Advanced Micro Devices (NASDAQ:AMD) by 16% successful the 4th quarter, ending the play with $551.4 cardinal worthy of shares successful its portfolio. The semiconductor banal ranks seventh successful the database of the champion stocks to bargain for 2026 according to Cathie Wood.

Advanced Micro Devices (NASDAQ:AMD) shares are down astir 11% truthful acold this year, but galore judge it’s a bully accidental to buy. Why? Advanced Micro Devices (NASDAQ:AMD) has struck large AI deals with immoderate of the apical companies, including Meta, OpenAI and Oracle. These companies volition usage Advanced Micro Devices (NASDAQ:AMD)’s chips for AI training, inference, and unreality services. Advanced Micro Devices (NASDAQ:AMD) is targeting astir 35% gross CAGR done the decade.  The institution expects Q1 gross to turn by astir 32% twelvemonth implicit year. The stock’s guardant P/E is astir 31, down much than fractional from its highest successful precocious 2025.

Insider Monkey’s database shows that 132 hedge funds had stakes successful Advanced Micro Devices (NASDAQ:AMD) arsenic of the extremity of December, up from 115 funds successful the erstwhile quarter.

White Falcon Capital Management stated the pursuing regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) successful its fourth 4th 2025 capitalist letter:

“The apical 5 positions for the White Falcon portfolio are precious metallic royalty companies, AMD, NFI Group, EPAM, and Nu Holdings. Advanced Micro Devices, Inc. (NASDAQ:AMD) designs a wide scope of integer semiconductors serving PCs, gaming consoles, and information centers, including the rapidly expanding AI market. Under CEO Lisa Su, the institution was pulled backmost from the brink of bankruptcy and reshaped into a high‑performance computing leader. Over the past decade, AMD has steadily taken marketplace stock from Intel and emerged arsenic a credible No. 2 successful GPUs down Nvidia. Given AMD’s volatility, we initiated a presumption successful November 2022 and added to it again successful April 2025. Management has guided to astir $10 successful Earnings per stock (EPS) for FY2027E and much than $20 successful EPS by 2030E. If the institution delivers connected these targets, past it should beryllium a $400+ banal successful a fewer years which is astir 75% higher than existent levels.”

A semiconductor. Photo by Tima Miroshnichenko connected Pexels

While we admit the imaginable of AMD arsenic an investment, our condemnation lies successful the content that immoderate AI stocks clasp greater committedness for delivering higher returns and person constricted downside risk. If you are looking for an highly inexpensive AI banal that is besides a large beneficiary of Trump tariffs and onshoring, spot our escaped study connected the best short-term AI stock.