Analyzing AMD: A Leader Among AI Stocks According to Billionaires
In our recent analysis of the 30 Best AI Stocks to Buy According to Billionaires, Advanced Micro Devices, Inc. (NASDAQ: AMD) emerges as a significant contender in the AI investment landscape. Let’s delve into AMD’s performance and its positioning amidst a turbulent economic backdrop influenced by recent tariff policies.
The Impact of Tariffs on the Market
In recent months, the enthusiasm surrounding the U.S. economy—bolstered by the AI investment hype—has faced challenges due to protective measures imposed by the Trump administration. The introduction of high tariffs on imports, especially targeting Chinese goods, has led to notable declines in global stock markets. The latest hikes have triggered a decline in market capitalization for the "Magnificent Seven" tech giants, which have heavy investments in AI technologies.
Research from IDC highlights the potential disruptions to supply chains and the inflationary pressures that these tariffs may unleash on various sectors, notably the IT industry. Reflecting the cautionary sentiment of high-net-worth investors, billionaire-led hedge funds curtailed their risk exposure before the tariffs were revealed, as reported by major investment banks like Goldman Sachs and Morgan Stanley.
A Shift in Billionaire Investment Strategy
This cautious shift marks a departure for many billionaires who had been bullish on AI’s transformative potential—a sentiment backed by McKinsey’s forecast of up to $4.4 trillion in annual economic contributions from AI technologies. These influential investors previously viewed substantial stakes in AI companies as both a diversification tool and an opportunity to shape future tech trends.
Nevertheless, with the looming threat of increased tariffs and subsequent market volatility, many hedge funds adjusted their positions, resulting in a reduction of net long exposure to historical lows. As markets brace for potential disruptions, the approach shifts toward a more conservative investment strategy.
AMD: A Standout Performer
Advanced Micro Devices, a prominent semiconductor manufacturer, is at the forefront of the AI resurgence. Key insights into AMD’s trajectory reveal that over 50% of its revenue stems from a robust data center portfolio. Following a record revenue of nearly $26 billion in 2024, analysts anticipate a Q1 2025 revenue of about $7.1 billion—reflecting a 30% year-over-year increase despite a slight sequential dip.
As it stands, AMD’s projections for double-digit growth in revenue and Earnings Per Share (EPS) indicate a strong momentum in both its GPU and CPU segments. However, recent revisions by investment advisory firm KeyBanc suggest some market consternation regarding the long-term viability of AMD’s AI business in the face of U.S.-China tensions.
Where Does AMD Rank?
In the context of billionaire investors aligning their portfolios, AMD ranks 11th on our analyzed list. While AMD remains a robust competitor, our analysis reveals alternative AI stocks with potentially higher returns within a shorter investment horizon. For instance, one notably undervalued AI stock has surged while several top-tier AI stocks experienced a 25% decline since the beginning of 2025.
Investors seeking promising AI opportunities may want to explore our detailed report on this cheapest AI stock, which trades under five times its earnings.
Conclusion
The investment landscape is shifting as we navigate tariffs, economic uncertainty, and the ever-evolving AI sector. At Extreme Investor Network, we continually analyze and compile valuable insights to empower our investors. For those interested in exploring further, check out our recommendations: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Stay informed and make strategic investment decisions as we continue to monitor these developments in the world of AI and beyond.