We recently compiled a list of the Jim Cramer’s Latest Game Plan: 20 Stocks to Watch. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other stocks featured in Jim Cramer’s latest game plan.
Jim Cramer, the host of Mad Money, recently advised investors to maintain composure as major companies release their earnings this week. Additionally, he highlighted the significance of the upcoming nonfarm payroll report, set to be released on Friday, which he believes will have considerable implications for interest rates.
He said that weak hiring figures could prompt the Federal Reserve to continue cutting rates. Last Friday, Cramer noted a mixed performance in the markets: the Dow dropped by 260 points, the S&P fell slightly by 0.03%, while the Nasdaq managed a gain of 0.56%. Cramer characterized the current market conditions as a preparatory phase for an eventful week ahead, urging viewers to pay close attention.
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Cramer emphasized the importance of the employment data released on the first Friday of the month, particularly in light of the forthcoming Fed meeting.
“Speaking of employment, on the first Friday of the month, we get the nonfarm payroll report. I can’t stress how important this number is. We have an upcoming Fed meeting and we’re now seeing [that] cyclicals really missed their numbers because of higher interest rates. A lot of them are rolling over. But if employment stays as strong as it’s been, then we’re going to hear that there will be no November rate cut.”
Throughout his commentary, Cramer conveyed a clear message: while it may be tempting to sell, this period aligns with a cycle of Fed rate cuts, suggesting that buying could be the more prudent strategy. He reminded viewers that this week feels charged with significance, likening it to a playoff atmosphere where the stakes are exceptionally high.
In his concluding remarks, Cramer said:
“Bottom line, huge week, huge opportunity. Just please remember, the first move’s been the wrong move, I’d say probably maybe, almost half the time since this earnings season began. Wait to process the numbers, listen to the conference call before you pull the trigger.”
Our Methodology
For this article, we compiled a list of 20 stocks that were discussed by Jim Cramer during his episode of Mad Money on October 25. We listed the stocks in ascending order of their hedge fund sentiment as of the second quarter, which was taken from Insider Monkey’s database of more than 900 hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Number of Hedge Fund Holders: 108
Cramer likes Advanced Micro Devices, Inc. (NASDAQ:AMD) and called it a “long-term terrific story”.
“Just say you like AMD as we do for the Charitable Trust. We know that AI is big big big. Big enough for more than just one chip maker. AMD won’t catch NVIDIA, but it will do enough to take chunks of the business. Plus, it has tremendous PC exposure right into the teeth of a big PC refresh cycle. We’re buying more AMD in any weakness for the Trust because this is a long-term terrific story.”
Advanced Micro Devices (NASDAQ:AMD) has established itself as a significant player in the semiconductor industry. The company has gained substantial traction among personal computer manufacturers due to the popularity of its GPUs, central processing units (CPUs), and neural processing units (NPUs).
Its Ryzen AI 300 series NPUs are set to power various computing platforms from manufacturers such as Microsoft, Asus, Lenovo, and HP. CEO Lisa Su highlighted in July that a significant increase in the adoption of Instinct MI300 GPUs contributed to this product family surpassing $1 billion in quarterly revenue for the first time. In the second quarter, the company reported $2.8 billion in data center sales, marking an impressive 114% increase compared to the same period last year.
On October 10, Advanced Micro Devices (NASDAQ:AMD) hosted an event titled “Advancing AI,” where Lisa Su revealed details about the next generation of chips. During this event, she also announced plans to introduce the MI350X GPU in the upcoming year, which is set to directly compete with Nvidia’s Blackwell chips, with shipments expected to commence in the latter half of 2025.
Overall AMD ranks 6th on the list of stocks featured in Jim Cramer’s latest game plan. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.