Parnassus Core Equity Fund Added Advanced Micro Devices (AMD) on a Dip

Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fund (Investor Shares) fell -2.44% (net of fees) in the quarter, outperforming the S&P 500 Index’s -4.27% return. U.S. equities fell in the first quarter, showing a shift from the robust gains of the previous quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Core Equity 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 29.76%, and its shares lost 11.42% of their value over the last 52 weeks. On June 26, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $143.68 per share, with a market capitalization of $232.963 billion.

Parnassus Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q1 2025 investor letter:

"We initiated two positions in the Information Technology sector during the quarter: Advanced Micro Devices, Inc. (NASDAQ:AMD), a manufacturer of semiconductor devices and electronic components, and ServiceNow, which provides software for automating enterprise workflows, after significant share price drawdowns in both cases. As a result of these additions, our underweight in the sector lessened, and our positioning is closer to market weight.

AMD is a strong player in multiple end markets such as personal computers, servers, gaming, AI accelerators, etc. We took advantage of a share price decline to add AMD for the portfolio’s AI theme and the adoption of accelerated computing for a potential rebound as its increasingly competitive GPUs and CPUs continue to take market share. The company has strong leadership under CEO Lisa Su."

Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 97 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the first quarter, which was 96 in the previous quarter. In the first quarter Advanced Micro Devices, Inc.'s (NASDAQ:AMD) revenue increased 36% year-over-year to $7.4 billion. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ: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 as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of 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.

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