Home Hedge Funds Is Advanced Micro Devices (AMD) an Expensive Stock?

Is Advanced Micro Devices (AMD) an Expensive Stock?


White Falcon Capital Management, an investment fund manager, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In 2023, the fund was up 36.0% compared to the S&P 500 (CAD), the MSCI All Country (CAD), and the S&P TSX’s returns of 23.2%, 18.5%, and 11.8%, respectively. The portfolio benefited from technology stocks during the year. In addition, please check the fund’s top five holdings to know its best picks in 2023.

White Falcon Capital Management featured stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD) in the fourth quarter 2023 investor letter. Headquartered in Santa Clara, California, Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company. On January 17, 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $160.17 per share. One-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was 14.48%, and its shares gained 136.55% of their value over the last 52 weeks. Advanced Micro Devices, Inc. (NASDAQ:AMD) has a market capitalization of $258.755 billion.

White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2023 investor letter:

“It is important to note that the returns depicted above actually originated in the market turmoil of 2022 and were only realized in 2023. We assess that about 75% of the returns in 2023 were derived from just 35% of the portfolio. Notably, the technology companies we acquired in 2022 – Advanced Micro Devices, Inc. (NASDAQ:AMD), Amazon, Docebo, NU, Rover – performed exceptionally well. In hindsight, the decision to allocate to technology stocks appears straightforward; but it actually demanded courage and conviction to buy and add to these stocks during the fear and uncertainty of the 2022 bear market.

The top 5 positions in the portfolio were: Precious Metals royalty basket, Nu Holdings, AMD Amazon.com and Converge Technology Services. AMD has worked out great for us but we must admit that it has gotten expensive. AI was not part of our original investment thesis and AMD is a great reminder of how one can get ‘lucky’ investing in quality businesses run by competent management teams (ditto for Amazon).”

Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 15th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 110 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of third quarter which was 112 in the previous quarter.

We discussed Advanced Micro Devices, Inc. (NASDAQ:AMD) in another article and shared the list of best long-term tech stocks to buy. In addition, please check out our hedge fund investor letters Q4 2023 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.

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