Advanced Micro Devices, Inc. (AMD)'s On Fire Due To AI, Says Jim Cramer

We recently published 10 Stocks Jim Cramer Discussed As He Revealed How Canada Has Harmed The US. Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks Jim Cramer recently discussed.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a CPU and GPU designer. Its shares have performed well in the year’s second half and are up by 49% year-to-date. While the stock had initially lagged due to NVIDIA’s indisputable lead in the AI race, analysts have increasingly started to opine that Advanced Micro Devices, Inc. (NASDAQ:AMD) can catch up with its larger rival and gain market share with its AI accelerators. Cramer attributed the stock’s recent performance to AI bullishness:

“It’s the AI-related chips that are on fire today. You . . got AMD. Because, AI is just moving along. . . .Let’s again speak of the stock market rather than Sweden’s gonna do, what’s happening in Sweden. The stock market is reacting incredibly positively to stuff and there are people who don’t want to react to it or think that somehow those points aren’t valuable. I think they’re crazy. We’re having a good rally.”

Here are Cramer’s earlier thoughts about Advanced Micro Devices, Inc. (NASDAQ:AMD):

“I don’t know, but it’s going in the right direction. I mean, they obviously have now good GPUs. There’s a GPU shortage everywhere. Stock’s had a real big run off the bottom. I do think it could have a pullback, but I do think that she’s [CEO Lisa Su] got what it takes to be able to take that stock much higher.”

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 have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

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