To say that hedge fund and mutual fund managers tend to follow the herd is quite an understatement, and always has been. While publicly they sometimes seem reluctant to discuss their holdings, especially stocks they are short sellers of, the reality is managers tend to talk among themselves as they run in the same circles, and often the discussions focus on their portfolios and what is in them.
A new Jefferies research report looks at the hedge fund holdings from the high turnover or “fast money” crew. The portfolio managers added eight new stocks, and the following five look like outstanding ideas for aggressive growth investors. They all have Buy ratings at top Wall Street firms, but it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
This top semiconductor stock has roared back after posting outstanding earnings. Advanced Micro Devices Inc. (NYSE: AMD) operates as a semiconductor company worldwide. Its products include x86 microprocessors as an accelerated processing unit, chipsets, discrete and integrated graphics processing units (GPUs), data center and professional GPUs, and development services. They also include server and embedded processors, and semi-custom system-on-chip products, development services and technology for game consoles.
The company provides the following:
- x86 microprocessors for desktop PCs under the AMD Ryzen, AMD Ryzen PRO, Ryzen, Threadripper, AMD A-Series, AMD FX, AMD Athlon, AMD Athlon PRO and AMD Pro A-Series processors brands
- Microprocessors for notebook and 2-in-1s under the AMD Ryzen, AMD A-Series, AMD Athlon, AMD Ryzen PRO, AMD Athlon PRO and AMD Pro A-Series processors brands
- Microprocessors for servers under the AMD EPYC and AMD Opteron brands
- And chipsets under the AMD trademark
The company reported outstanding quarterly results, with data center revenue doubling, and some on Wall Street see a price objective with a path to long-term earnings per share of $4 or more. Toss in solid market share gains in the first quarter, and the chip giant could be poised for a strong second half.
Goldman Sachs has its price target for Advanced Micro Devices stock set at $130. The Wall Street consensus target is $114.37, and the final trade for Monday came in at $111.32 a share.