AMD and Alphabet: Billionaire Steve Cohen Loads Up on 2 Big AI Stocks


AI is booming, providing an important pillar of support for the stock market’s substantial year-to-date gains. Put into numerical terms, the tech-heavy NASDAQ composite index, which features many of the AI sector’s major names, has added nearly 30% for this year to date – on top of the 43% gains it registered last year.

The significance of AI, both as a technological force and an investment opportunity, is underscored by the attention it’s garnering from Wall Street titans – the billionaire investors who’ve made fortunes betting on the right trends.

Steve Cohen, the founder and CEO of Point72, is among them. Drawing parallels between the current AI boom and the tech revolution of the 1990s, Cohen views AI not as a speculative bubble but as a ‘really durable’ phenomenon poised to reshape industries and markets.

More importantly, Cohen is willing to put his money where his mouth is, and is reportedly preparing to set up a new billion-dollar hedge fund to focus on AI stocks. In the meantime, his main firm, Point72, is already betting heavily on AI, and has opened new positions in Advanced Micro Devices (NASDAQ:AMD) and Alphabet (NASDAQ:GOOGL), two of the industry’s leaders.

According to the data from TipRanks, both AMD and GOOGL feature Strong Buy consensus ratings and double-digit upside potential for the coming year. Let’s give them a closer look, and find out just why billionaire investor Steve Cohen is loading up on these two big AI stocks.

Advanced Micro Devices

First up is AMD, a leading innovator in the semiconductor chip industry – and a company that is angling to challenge the chip giant Nvidia for a larger slice of the AI pie. While AMD is not in the same trillion-dollar league as the market leader Nvidia – its market cap of ~$229 billion ranks it sixth among its peers – the company has built up a solid business for itself, putting a wide range of top-end PC processor and AI-capable accelerator chips on the market.

Among AMD’s leading products are several newly announced chips and chipsets, including the Ryzen 7 9800X3D desktop processor, optimized for high-end gaming uses; the Versal Premium Series Gen 2, designed to improve data movement efficiency and to unlock more memory storage in data-intensive markets; and the Instinct MI300A APU, the market’s second exascale accelerator, designed to power the fastest-ever supercomputer. Whatever the immediate application, the common denominator in all of these is AI – AMD’s newest chips have the speed and capacity to handle data-heavy workloads.



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