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

Core Insights - Macquarie Asset Management's "Macquarie Large Cap Growth Fund" reported positive returns in Q3 2025 but underperformed against the Russell 1000 Growth Index due to an unfavorable market environment and missteps [1] - AI-themed stocks were the primary drivers of market gains, contributing approximately 75% to market returns in the quarter [1] Company Highlights - Advanced Micro Devices, Inc. (NASDAQ: AMD) was highlighted as a key stock in the fund's portfolio, with a one-month return of 37.03% and a 52-week gain of 39.68% [2] - AMD's stock closed at $218.09 on October 14, 2025, with a market capitalization of $353.926 billion [2] - The total addressable market for AI chips is significant, and AMD is positioned to be a competitive supplier alongside NVIDIA, particularly in AI inference and training chips [3] Financial Performance - AMD achieved a record revenue of $7.7 billion in Q2 2025, reflecting a 32% year-over-year increase, and generated over $1 billion in free cash flow [4] - The number of hedge funds holding AMD increased from 97 to 113 in the second quarter of 2025, indicating growing interest [4]