Advanced Micro Devices (AMD) to Begin U.S. Chip Production in TSMC's Arizona Plant for AI Expansion

We recently published a list of 10 AI Stocks You Shouldn’t Overlook Right Now. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other AI stocks you shouldn’t overlook right now.

According to Adam Thierer, a senior fellow at the center-right think tank R Street Institute, Trump’s tariffs could prove to be a massive gift for China, even helping it catch up in the AI race.

“It’s going to be very hard for the U.S. to win the so-called AI Cold War if America’s trade policies are simultaneously tanking global markets, discouraging technological investments, and potentially undermining traditional alliances with key allies.”

Trump’s policies are disrupting supply chains and causing volatility in global markets, which may lead US allies to turn to China to meet their technological needs.

“Suddenly, in the wake of this trade fiasco, we see EU officials saying, ‘Let’s get on the phone with China and talk. Huawei has this telecommunications hardware system they want to sell, and there’s also these AI models that are free of charge.”

READ ALSO: 10 AI Stocks on the Move and  10 AI Stocks to Watch Amid Market Volatility.

With all the tensions caused by the US tariffs, China’s President Xi Jinping has recently called for stronger ties with Vietnam on trade and supply chains as he attended the signing of dozens of cooperation agreements between the two nations. While Beijing faces 145% U.S. duties, Vietnam has been negotiating a reduction of U.S. tariffs of 46% that would otherwise apply in July after a global moratorium expires, Reuters reported.

“The two sides should strengthen cooperation in production and supply chains,” Xi

The President has also urged increased trade and stronger ties with Hanoi on artificial intelligence and the green economy.

Discussing the meetings, U.S. President Donald Trump said that the two countries’ discussions were focused on harming the United States. However, he said that he did not blame them for holding such talks.

“I don’t blame China; I don’t blame Vietnam. That’s a lovely meeting. Meeting like, trying to figure out, ‘how do we screw the United States of America?'”

-Trump told reporters at the White House.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

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 373.4% since May 2014, beating its benchmark by 218 percentage points  (see more details here).

Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. On April 15, the company announced that its key processor chips would soon be made at TSMC’s new production site in Arizona. This will mark the first time that its products will be manufactured in the United States.

“Our new fifth-generation EPYC is doing very well, so we’re ready to start production.”

-AMD Chief Executive Lisa Su told reporters in Taipei.

Besides AMD, Apple and Nvidia have said that some of their chips are being produced at TSMC’s Arizona plant.

“We want to have a very resilient supply chain, so Taiwan continues to be a very important part of that supply chain, but the United States is also going to be important and we’re expanding our work there, including our work with TSMC and other key supply chain partners.”

-Su.

Overall, AMD ranks 8th on our list of AI stocks you shouldn’t overlook right now. 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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