What Makes Micro Devices (AMD) an Interesting Investment Bet?

Macquarie Asset Management, an investment management company, released its “Macquarie Large Cap Growth Fund” investor letter for the third quarter of 2025. A copy of the letter can be downloaded here. Equity indexes again posted record gains in the third quarter of 2025, with AI-themed stocks leading the market. AI Stocks led around 75% of the market returns in the quarter.  However, the fund delivered positive returns in the quarter, but lagged behind the Russell 1000 Growth Index benchmark. The fund’s underperformance was driven by an unfavorable market environment and several missteps. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Macquarie Large Cap Growth Fund highlighted stocks such as Advanced Micro Devices, Inc. (NASDAQ: AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was 37.03%, and its shares gained 39.68% of their value over the last 52 weeks. On October 14, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $218.09 per share, with a market capitalization of $353.926 billion.

Macquarie Large Cap Growth Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its third quarter 2025 investor letter:

"Advanced Micro Devices, Inc. (NASDAQ:AMD), a US semiconductor company, was also added to the portfolio. The total addressable market for AI chips is vast and in need of a second supplier to complement NVIDIA. We believe AMD is now positioned to supply a competitive, and possibly superior, chip for inference on a price/performance basis. Additionally, its next-generation chip for AI training should be a viable option to supplement NVIDIA supply."

Advanced Micro Devices, Inc. (NASDAQ:AMD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 113 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the second quarter, up from 97 in the previous quarter. Advanced Micro Devices, Inc. (NASDAQ:AMD) achieved a record second-quarter revenue of $7.7 billion, marking a 32% increase compared to the previous year, and generated over $1 billion in free cash flow. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of best American semiconductor stocks to invest in. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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