Here’s Why You Should Consider Investing in Advanced Micro Devices (AMD)

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Baron Funds, an asset management company, released its “Baron Opportunity Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. Baron Opportunity Fund (the “Fund”) fell sharply and significantly lagged the broader market during the second quarter and first half of the year. For the quarterly period, the Fund dropped 26.96% (Institutional Shares), trailing the Russell 3000 Growth Index, which fell 20.83%, and the S&P 500 Index, which declined 16.10%. Go over the fund’s top 5 positions to have a glimpse of its finest picks for 2022.

In its Q2 2022 investor letter, Baron Opportunity Fund mentioned Advanced Micro Devices, Inc. (NASDAQ:AMD) and explained its insights for the company. Founded in 1969, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a Santa Clara, California-based semiconductor company with a $121.4 billion market capitalization. Advanced Micro Devices, Inc. (NASDAQ:AMD)  delivered a -10.19% return since the beginning of the year, while its 12-month returns are down by 47.71%. The stock closed at $75.25 per share on September 20, 2022.

 Here is what Baron Opportunity Fund has to say about Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2022 investor letter:

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global fabless semiconductor company focusing on high-performance computing technology, software, and products. AMD designs leading high-performance central and graphics processing units (known as CPUs and GPUs) and integrates them with hardware and software to build differentiated solutions for customers.

AMD has been gaining meaningful share in personal computing and server end markets over the past several years driven by the performance of its processors and technology and strong execution against its technology roadmap, and we believe share gains will continue over the coming years from a combination of AMD’s continued advancements and Intel’s stumbles in developing its leading-edge technology.

Additionally, the recently closed acquisitions of Xilinx and Pensando enhance AMD’s positioning within the data center, a key growth engine for the semiconductor industry, and Xilinx specifically opens up several new growth opportunities in new end markets like industrial, automotive, and communications. The company also generates significant cash flow, giving it capital allocation optionality for further M&A and returning capital to shareholders.”

Our calculations show that Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks 29th on our list of the 30 Most Popular Stocks Among Hedge Funds. Advanced Micro Devices, Inc. (NASDAQ:AMD) was in 87 hedge fund portfolios at the end of the second quarter of 2022, compared to 83 funds in the previous quarter. Advanced Micro Devices, Inc. (NASDAQ:AMD) delivered a 10.19% return in the past 3 months. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q2 page.

Disclosure: None. This article is originally published at Insider Monkey.