We recently released a list 15 high-growth companies hedge funds are buying. In this article, we will look at Advanced Micro Devices, Inc. (NASDAQ:AMD) Position against other high-growth stocks.
The global economy is expected to face modest growth in 2025 due to ongoing challenges, with U.S. GDP forecast at 2%, euro zone at 0.9%, and China at 4.2%. Inflation may remain high due to increased fiscal spending and potential tariffs, and the potential room for central banks to lower, resulting in uncertainty and possible volatility. But productivity gains driven by AI and other emerging technologies offer long-term hope. The U.S. is expected to benefit the most from these gains, and Europe may lag behind due to slower investment and technology adoption.
According to Deutsche Bank Wealth Management, policies are shifting from currency to fiscal, and countries such as China are expected to launch growth plans. Stocks, especially U.S. stocks, are favored by investors and are supported by profit growth and favorable policy expectations. Bond markets and commodities also provide opportunities, and infrastructure investment is considered a long-term growth area. Similarly, despite the current market uncertainty, BlackRock believes there is reason to remain optimistic about developed market stocks in the next 6 to 12 months. The U.S. Treasury once acted as a safety net when stocks fell and has not provided the same protection lately. Furthermore, the dollar has lost its pace in the recent sell-off, which is unusual. As a result, some investors are turning to alternatives such as gold, which have reached record highs. The rise of artificial intelligence is also reshaping the market, allowing people to concentrate more on some large-scale technology names. This can enhance returns, but also increase risks. Private capital also has demand, although higher interest rates may be weighed in future returns.
As the market becomes increasingly unpredictable, many investors are beginning to follow hedge funds, hoping they can repeat last year’s strong returns and stay ahead. In 2024, hedge funds issued outstanding results, taking advantage of market volatility and policy shifts. The average return by November was 10.7%, which is a significant improvement from the 5.7% return in the same period in 2023. The rise has been backed by market turmoil, changes in central bank policies and uncertainty surrounding the U.S. presidential election. It is worth noting that some hedge funds have made amazing returns, such as Light Street Capital’s Long/Short Tech Fund soaring 59.4%, while macro-centric fund Discovery Capital has a return of 52%. Bridgewater’s Pure Alpha Fund rose 11%, with Marshall Wace, a major UK hedge fund, garnering impressive returns in several of its funds, including its Eureka Fund with a return of 14%. Multi-strategy funds such as Citadel and Millennium also performed well.
Close-up of a complex PCB board with several mutual semiconductor parts on it.
In this article, we used the Finviz filter and filtered stocks with revenue growth of more than 20% over 5 years, verifying this information from other sources. We selected 15 stocks with the highest hedge fund sentiment from Insider Monkey's database (Q4 2024) to compile this list. We rank the list from the minimum to the majority of hedge fund holders.
Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Number of hedge fund holders: 96
Average 5-year revenue growth: 34.35%
American semiconductor giant Advanced Micro Devices, Inc. (NASDAQ: AMD) ranks seventh on our list of high-growth stocks favored by Wall Street funds. On March 12, JPMorgan maintained a neutral rating on AMD with a target share price of $130. Although the stock has fallen 36% in six months, strong growth is expected in 2025, with JPMorgan's revenue growing by 20%. Positive drivers include server CPU, AI GPU and in-game benefits. The company is also preparing to launch its MI400 chip in 2026 and strengthen its position in the AI and data center markets.
March 31, Advanced Micro Devices, Inc. (NASDAQ:AMD) acquires ZT Systems, the world's largest cloud company's top provider of AI and computer infrastructure. This move can enhance AMD's ability to provide comprehensive AI solutions by combining its CPU, GPU, network chips and open source software with ZT's system design expertise. The acquisition is expected to strengthen AMD's earnings by the end of 2025. As part of the deal, AMD plans to sell ZT's U.S. manufacturing operations while retaining its leadership and design teams on board to fix development of AI infrastructure.
According to Insider Monkey's fourth-quarter database, 96 hedge funds are long-term advanced Micro Devices, Inc. (NASDAQ:AMD), compared with 107 funds in the previous quarter. Fisher Asset Management is the company's largest stakeholder, with 24 million shares worth $2.9 billion.
Overall, AMD Ranked seventh Among high-growth companies, hedge funds are buying. Although we acknowledge the potential of AMD as an investment, our belief is that AI stocks have greater hope and take place in a shorter time frame. AI stocks have risen since the beginning of 2025, while popular AI stocks have lost about 25%. If you are looking for AI stocks that are more promising than AMD but have less than 5 times its earnings, check out our report The cheapest AI stock.
Read next: According to billionaires, there are 20 best AI stocks available now, and 30 best stocks to buy now.
Disclosure: None. This article was originally published in Internal monkey.