We recently published a list of Top 10 AI stocks to watch now. In this article, we'll take a look at where Advanced Micro Devices (NASDAQ:AMD) ranks compared to other top AI stocks to watch right now.
Tom Hancock, GMO US quality ETF portfolio manager, said in a latest program on CNBC that the NASDAQ has become a “risky” bet amid a lot of volatility.
“It hasn't really become an index; it has become a single bet. So it is very risky to invest in. I don't think you would expect that from any kind of diversified investor. Next year will likely see more volatile returns, and I'm a little concerned that the AI rally has extended. So those can be uncomfortably volatile returns.”
Hancock said investors should also pay attention to some “old economy” stocks. He thinks AI stocks have become a “hype trade” and that any “hiccup” in the economy could cause these stocks to crash. He also urged investors to look for stocks outside the US.
Hancock believes that the gains in AI will now extend to smaller companies that have not received much attention until now.
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For this article, we've picked 10 AI stocks that are trending right now based on the latest news. We have listed the number of hedge fund investors for each stock. Why are we interested in the stocks that hedge funds invest in? The reason is simple: our research shows that we can outperform the market by imitating the best stock picks from the best hedge funds. Our quarterly newsletter strategy selects 14 small- and large-cap stocks each quarter and has returned 275% since May 2014, beating the benchmark by 150 percentage points (see more details here).
Number of hedge fund investors: 107
In late October, while talking about AMD's Q3 results on CNBC, Bernstein Research senior analyst Stacy Rasgon explained the key issues dogging the company. The analyst said Advanced Micro Devices Inc (NASDAQ:AMD) product launches are lagging behind Nvidia's and the stock fell after its latest quarterly results as investors were more interested in AI metrics and guidance.
“You have to be a little careful with these types of first-party benchmarks, but they believe they will compete well with a subset of Nvidia's parts. But the problem is that the parts they're competing with Nvidia are already there, right? While we wait, you know, I don't know, 6, 9, 12 months for the relevant A and B parts. By then, Nvidia will have their next-gen stuff. And if you look a bit on a timeline, at the relative release dates of competing parts, in many cases Nvidia still released their parts at least a year in advance. Couple that with the other areas where Nvidia is strong in software and services, hardware and systems, and ecosystem: these are things that AMD is doing their best to engineer, but it's very difficult. So I don't really see marking the moat around Nvidia's parts.
