We recently published a list of 10 Large Cap Stocks Jim Cramer Can't Stop Talking About. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against the other large cap stocks Jim Cramer can't stop talking about.
In a recent episode of Mad Money, Jim Cramer highlights a critical gap in the American education system, which often overlooks financial literacy despite its importance. While students may graduate with extensive knowledge in subjects like chemistry, history, and languages, they rarely receive practical education on managing personal finances. Cramer emphasizes that financial planning, retirement readiness, and investing are seldom covered, leaving many people uninformed about crucial money management skills.
Cramer's mission is to bridge this gap through the CNBC Investing Club, where he and the Charitable Trust provide practical financial guidance. He stresses the significance of retirement planning, noting that while 401(k) plans and Individual Retirement Accounts (IRAs) are key tools for saving, many people lack comprehensive understanding of their benefits and limitations.
Cramer points out that while contributing to a 401(k) is widely advised, it's not always the best strategy for everyone. Despite its tax advantages and the ability to defer taxes on contributions, 401(k) plans can have drawbacks, such as hidden fees that diminish returns.
He argues that understanding both the benefits and the shortcomings of these retirement accounts is essential for making informed financial decisions. Cramer encourages individuals to educate themselves about these investment options to ensure their retirement savings are managed effectively.
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A close up of a complex looking PCB board with several intergrated semiconductor parts.
Jim Cramer emphasizes that Advanced Micro Devices Inc. (NASDAQ:AMD) is not just competing with NVIDIA Corporation (NASDAQ:NVDA) but is actually dominating the market. According to Cramer, Advanced Micro Devices Inc. (NASDAQ:AMD) is capturing significant market share, however the performance of NVIDIA Corporation (NASDAQ:NVDA)'s high-end chips is not significantly impacted by AMD's offerings. This highlights Advanced Micro Devices Inc. (NASDAQ:AMD)'s strong position and influence in the semiconductor industry.
Advanced Micro Devices Inc. (NASDAQ:AMD)'s latest earnings report shows a robust performance, with a 9% increase in revenue year-over-year, reaching $5.84 billion, driven by a rebound in chip demand. Advanced Micro Devices Inc. (NASDAQ:AMD)'s adjusted earnings per share climbed to $0.69, bolstered by improved efficiency and a higher gross margin of 53%, up from 50% last year. Advanced Micro Devices Inc. (NASDAQ:AMD)'s strength in high-performance computing is evident, as its EPYC CPUs and Instinct GPUs have powered the world's fastest supercomputer for three years in a row. The introduction of the Ryzen 9000 Series processors, built on the new "Zen 5" architecture, further boosts Advanced Micro Devices Inc. (NASDAQ:AMD)'s competitive edge in gaming, productivity, and content creation.
Looking forward, Advanced Micro Devices Inc. (NASDAQ:AMD) anticipates a strong Q3 2024, with projected revenue of about $6.7 billion, representing a 16% increase from the previous year. Advanced Micro Devices Inc. (NASDAQ:AMD) is expanding its presence in AI and data centers, with new customer wins and product launches set to capitalize on growing demand for advanced computing.
Overall AMD ranks 6th on our list of the large cap stocks Jim Cramer can't stop talking about. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that under the radar 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 more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.