Here’s Why Elite Hedge Funds Were Buying Advanced Micro Devices (AMD) For 2026

Group 1 - Advanced Micro Devices (NASDAQ:AMD) is included in Cathie Wood's 2026 Portfolio as one of the 10 best stocks to buy, despite ARK reducing its stake by 16% in Q4, ending with $551.4 million in shares [1] - AMD shares have decreased by approximately 11% year-to-date, but analysts view this as a buying opportunity due to significant AI partnerships with companies like Meta, OpenAI, and Oracle, targeting a revenue CAGR of about 35% through the decade [2] - The company anticipates a 32% year-over-year revenue growth for Q1, with a forward P/E ratio around 31, which has dropped more than 50% from its peak in late 2025 [2] Group 2 - As of December, 132 hedge funds held stakes in AMD, an increase from 115 in the previous quarter, indicating growing institutional interest [3] - White Falcon Capital Management highlighted AMD's transformation under CEO Lisa Su, noting its rise as a high-performance computing leader and its market share gains against Intel, projecting $10 EPS for FY2027E and over $20 EPS by 2030E, suggesting a potential stock price of $400+ in a few years [3]