Advanced Micro Devices (AMD): D. E. Shaw Is Loading Up on This Chip Stock

D. E. Shaw has registered a large buying enactment astir Advanced Micro Devices, Inc. (NASDAQ:AMD) banal successful the 4th fourth of 2025. Although the semiconductor steadfast is simply a semipermanent holding of the hedge fund, archetypal featuring the 13F portfolio mode backmost astatine the extremity of 2010, successful caller quarters, the money had reduced it from 9.2 cardinal shares successful the 4th fourth of 2023 to conscionable 350,000 shares successful the 3rd 4th of 2025. However, successful the 4th fourth of 2025, the money upped this by 1,917%, increasing the shares owned to much than 7 million.

READ NEXT: 15 Stocks That Will Make You Rich successful 10 Years.

Elite hedge funds often similar the risk-reward illustration of Advanced Micro Devices, Inc. (NASDAQ:AMD) implicit rivals similar NVIDIA. In aboriginal 2026, AMD traded astatine astir 11x sales, compared to Nvidia’s 23x sales. Many managers reason that if AMD captures conscionable 15%-20% of the AI accelerator market, up from 9% successful 2025, the banal could spot a monolithic aggregate re-rating toward NVIDIA levels. Another important origin investors support successful caput portion investing successful AMD is that portion AI GPUs get the headlines, AMD’s CPUs proceed to drawback marketplace stock from spot powerhouse Intel successful the accepted information halfway market. AMD absorption has signaled a way toward 50% server CPU gross stock by the extremity of 2026. The 6th Gen EPYC chips launching successful precocious 2026 are expected to thrust a 40% year-over-year surge successful server revenue.

While we admit the imaginable of AMD arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and 15 Stocks That Will Make You Rich successful 10 Years

Disclosure: None. Follow Insider Monkey connected Google News