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<title>Analyzing Advanced Micro Devices (AMD) Amid Recent Earnings</title>
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<h2>Overview of Recent Earnings and Market Activity</h2>
<p>We recently published a comprehensive analysis highlighting 10 buzzing stocks following the latest earnings season. This article focuses on Advanced Micro Devices, Inc. (NASDAQ: AMD) and its current standing compared to other prominent stocks that have garnered attention after their earnings reports.</p>
<p>The markets have shown positivity in response to the recent US-China trade agreement, which aims to reduce tariffs on mutual imports for a period of 90 days. This agreement effectively addresses many bearish scenarios that Wall Street analysts had anticipated, which were contingent on worsening tariffs.</p>
<h2>The Significance of the Trade Deal</h2>
<p>Sylvia Jablonski, the CEO and CIO of Defiance ETFs, characterized the trade deal as a "game changer" during her appearance on CNBC. She expressed that both countries have recognized the potential negative outcomes of a non-tariff resolution as economic data emerged. There have been numerous complaints from various sectors regarding China's trade practices, while U.S. retailers conveyed concerns over empty shelves, triggering apprehension especially among semiconductor and software companies.</p>
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<p>"I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors, and then in the U.S., retailers were reaching out to President Trump and saying that shelves are empty and a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries decided that they really don't want to decouple, and making America great might also mean that China stays."</p>
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<h2>Current Market Sentiment and Hedge Fund Interest</h2>
<p>In our ongoing analysis, we selected ten stocks showing significant movement during the recent earnings season, coupled with details regarding the latest hedge fund sentiments around them. The stocks that hedge funds invest in are of particular interest as our research indicates that mirroring the top stock picks of leading hedge funds tends to yield better market performance. Our quarterly newsletter’s investment strategy, which picks 14 small-cap and large-cap stocks each quarter, has successfully returned 373.4% since May 2014, outperforming its benchmark by an impressive 218 percentage points.</p>
<h2>AMD’s Position in the Market</h2>
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<img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///ywAAAAAAQABAAACAUwAOw==" alt="Analyst Says Advanced Micro Devices (AMD) Remains Under the Radar, Has More Room for Growth" height="538" width="960">
<figcaption>Analyst Insights on Advanced Micro Devices (AMD): Growth Potential and Market Visibility</figcaption>
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<p>The current interest surrounding Advanced Micro Devices (NASDAQ: AMD) is underscored by the fact that 107 hedge funds have invested in the company. Ryan Patel from the Drucker School of Management has noted that AMD is well-positioned for growth and has remained somewhat unnoticed in the market.</p>
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<p>"You've seen a lot of movement. Cathie Wood's ARK came and made an investment. The analysis shows that, even year to date, AMD's stock has appreciated by about 5 to 6% in the past few weeks. Their earnings report was impressive, but they often go under the radar, especially in comparison to Nvidia. There remains significant room for growth until the market fully recognizes AMD's potential."</p>
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<h2>Growth Prospects in the Data Center Segment</h2>
<p>Bulls of Advanced Micro Devices argue that the market should focus on the company's appealing data-center growth prospects rather than solely comparing its chips with those of Nvidia. AMD's performance in the data center segment has been robust, driven by increasing demand for Instinct GPU shipments and strong sales of EPYC CPUs. According to projections from Goldman Sachs Research, global data center demand is expected to increase by 160% by the year 2030, with U.S. data centers anticipated to consume 8% of total power by that time, up from just 3% in 2022.</p>
<p>Furthermore, McKinsey estimates that meeting this growing demand in the U.S. will require an investment exceeding $500 billion in infrastructure by the end of the decade. These figures indicate a promising landscape for AMD as they continue to expand their presence in this lucrative market.</p>
<h2>Cross-Comparisons and Competitive Landscape</h2>
<p>Artisan Global Opportunities Fund reflected on AMD's performance in its Q4 2024 investor letter, mentioning that while AMD continues to innovate, its share price has faced challenges. The firm noted that AMD successfully launched its MI300 graphic processing unit (GPU) and increased its 2024 AI-related revenue guidance from $4.5 billion to $5.0 billion. Nonetheless, the company's stock experienced downward pressure due to increasing competition from custom AI accelerator solutions introduced by competitors like Broadcom and Marvell, which has posed a more significant threat than anticipated.</p>
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<p>"Among our top detractors were Advanced Micro Devices, Novo Nordisk, and Danaher. While AMD has made substantial strides in AI, its shares have faced pressure primarily due to cyclical issues in other business sectors. As the data center segment continues to grow and the cyclical businesses recover, we expect AMD to demonstrate stronger earnings growth in the upcoming periods."</p>
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<h2>Conclusion: A Place Among the Buzzing Stocks</h2>
<p>Overall, Advanced Micro Devices ranks third among our list of vibrant stocks following the recent earnings season. While we see potential in AMD as an investment, we believe that under-the-radar AI stocks may present even greater opportunities for higher returns within a shorter timeframe. If you are in search of a compelling AI stock that offers more promise than AMD and trades at below five times its earnings, we recommend seeking further insights on the emerging top performers in this sector.</p>
<h2>Recommended Reading</h2>
<p>For those interested in expanding their investment strategy, consider exploring the following resources: "20 Best AI Stocks To Buy Now" and "30 Best Stocks to Buy Now According to Billionaires." Stay informed and make educated investment decisions!</p>
<p>Disclosure: None. This article has been prepared for informational purposes only.</p>
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