We recently compiled a list of the 15 AI News That You Should Not Miss. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other AI stocks.
US-China chip wars have been dominating headlines in the AI universe for the past few weeks. After the US announced fresh curbs on export of advanced AI chips to China, the Asian country responded by announcing that it had banned exports to the United States of the critical minerals gallium, germanium and antimony that have widespread military applications. Some of the banned minerals like gallium and germanium are used in semiconductors, while germanium is also used in infrared technology, fibre optic cables and solar cells. Others, like antimony, are used in bullets and other weaponry, while graphite is the largest component by volume of electric vehicle batteries.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
According to news agency Reuters, the move has sparked fresh concern that Beijing could next target other critical minerals, including those with even broader usage such as nickel or cobalt. China has also blocked some purchases from chipmaker Micron citing security concerns. There are also reports that chipmaker Intel would be the next target following comments from the Cybersecurity Association of China that the American firm has constantly harmed the country’s national security and interests and that its products sold in China should be subject to a security review.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among 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: 107
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The stock has been in focus over the past week, along with other chipmakers, as the US announced additional curbs on the access of China to vital tools and components for AI chips. In response, four semiconductor associations in China declared processors made in the US as unsafe. News agency Reuters reported that the comments came from groups including Internet Society of China and the China Association of Communication Enterprises. Per the report, in total, the four groups, which released similarly worded statements right after each other, represent roughly 6,400 members combined.
Overall AMD ranks 7th on our list of AI stocks you should not miss. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. 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.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.