We recently published a list of the 30 Stocks That Should Double in 3 Years. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against other stocks that should double in 3 years.

On April 25, Kari Firestone, Aureus Asset Management executive chairman and co-founder, joined CNBC’s ‘Squawk Box’ to discuss the latest market trends and express how this is a reasonable place for long-term investors to enter the market. Despite persistent concerns about a recession coming from tariffs, Firestone thinks that corporate earnings have generally exceeded expectations. The strong performance of major tech companies has been a key driver behind the market’s recent gains, such as those in the MAG7. Elaborating on the significance of these tech giants, Firestone also underscored that the top 2 companies in the S&P 500, regardless of which they are, match the market value of the bottom 300 companies in the index. This concentration means that these leading firms are fundamental to the US economy’s progress.

The conversation then addressed the impact of proposed FDA budget cuts on innovation for biotech companies. Firestone agreed that such cuts could slow down the approval process for new products and drug manufacturing, and she advised against reducing the FDA’s budget. However, she believes that the market has already priced in these risks. She compared the situation to previous market overreactions, such as the 32% drop during the early COVID-19 period, which was followed by a rapid recovery.

Firestone also concluded that the market is now fairly valued. Some sectors offer attractive opportunities due to recent price declines. She assessed the overall market valuation in light of tariff uncertainties and the recent rebound from a 20% drop to a current decline of about 10.5%. She explained that the market’s price-to-earnings multiple has decreased from 22.5x next year’s earnings to 18.5x, assuming no severe recession. She’s confident that the market is unlikely to end the year lower than current levels and recommends that long-term investors enter the market at this stage. Firestone believes that the market has partially priced in the impact of tariffs. She estimated that a 5% to 10% tariff is reflected in current prices. While a full-blown recession may not be entirely priced in, a slowdown likely is.

Our Methodology

We sifted through financial media reports and Reddit threads to compile a list of the top 30 stocks that should double in 3 years. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 1000 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 96

Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor fabless company that specializes in HPC and graphics solutions. Its core products represent AMD designs of CPUs such as Ryzen, GPUs, and adaptive SoCs. These are used in cloud infrastructure, personal computing, and gaming, as well as embedded systems.

AMD delivered record annual revenue in 2024 while more than doubling free cash flow from 2023. Q4 revenue increased 24% to a record $7.7 billion due to record quarterly data center and client segment revenue. Despite gaining market share in PCs and servers, Jefferies lowered the stock’s price target from $135 to $120 on March 27 and downgraded it from Buy to Hold. Analyst Blayne Curtis noted that the company’s AI growth remains weaker than anticipated.

The data center segment contributed ~50% of annual revenue as Instinct and EPYC processor adoption expanded significantly with cloud, enterprise, and supercomputing customers. The company successfully established its multibillion-dollar data center AI franchise, delivering greater than $5 billion of data center AI revenue for the year.

Overall, AMD ranks 9th on our list of the stocks that should double in 3 years. While we acknowledge the growth potential of AMD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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