Is Advanced Micro Devices, Inc. (AMD) is a good feminist campaign worth buying?

We recently created a list of the so-called 11 best feminist stocks worth investing in. In this article we will take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) compares to other feminist stocks.

Over time, the role of women in the modern workplace has slowly begun to increase. In less than a century, more women are not only leading companies but also among the richest people in the world. At the same time, women have shown that they are equal to men when it comes to revolutionizing industries. One of the best examples of this phenomenon is the most famous American rocket company, SpaceX. While SpaceX is famous for its billionaire founder Elon Musk, the company’s chief operating officer and president Gwynne Shotwell was equally responsible for its enormous success in the rocket industry, which broke the decades-long monopolies held by a few defense contractors.

In fact, this growing trend of women taking on leadership responsibilities in some of the world’s largest companies has also generated some interesting statistics when it comes to pay. Equilar data shows that in 2023, of the 341 CEOs surveyed, 25 were women. Their average compensation package was $17.6 million, which was 7.7% higher than the figure for the full data set, according to Equilar. At the same time, five new directors were added to the list of 25 women CEOs compared to 2022.

With this in mind, the gender pay gap in the U.S. appears to be narrowing. To confirm this, we will need to look at compensation statistics for the entire country, not just for S&P 500 CEOs. Well, on this front, the data compiled by Pew shows that there is a lot of work to be done. The research company indicates that in 2002, women earned 80% of men’s wages. Two decades later, in 2022, the figure was 82%, indicating that there is still much work to be done to reduce the gender pay gap. However, at the same time, younger women can change these trends. That’s because women ages 25 to 34 earned 92% of their male counterparts, significantly higher than 86% in 2002, according to Pew.

With these details in mind, we decided to take a look at the best feminist stocks worth investing in.

Our methodology

To create our list of the best feminist stocks to invest in, we ranked publicly traded Fortune 500 companies with women directors by the number of hedge funds that bought the stock in the first quarter of 2024. Why do we care what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the best stocks of the best hedge funds. As part of our quarterly newsletter strategy, we select 14 small- and large-cap stocks every quarter, and since May 2014, we have returned 275%, beating our benchmark by 150 percentage points (see more details here).

Close-up of an assembled PCB with several integrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of hedge fund shareholders in Q1 2024: 124

CEO: Dr. Lisa T. Su Ph.D.

CEO of Advanced Micro Devices, Inc. (NASDAQ:AMD), Dr. Lisa Su, is widely recognized as one of the most successful executives in the semiconductor industry. Under her leadership, AMD transformed from a loss-making entity to a profitable company that competes with Intel on product design and cost advantages. Like Intel, Advanced Micro Devices, Inc. (NASDAQ:AMD) also focuses on the artificial intelligence industry with a diversified product portfolio. Susquehanna is also quite bullish on Advanced Micro Devices, Inc. (NASDAQ:AMD) as she raised the company’s stock price target to $200 from $185 in June 2024 and maintained a positive rating on the stock. The company announced that Advanced Micro Devices, Inc. (NASDAQ:AMD) has gained share in the PC and data center market and that it may continue to benefit from Intel’s manufacturing problems.

A classic growth company, Advanced Micro Devices, Inc. (NASDAQ:AMD), has a forward price-to-earnings ratio of 46.73, more than double the market’s 21. This means that investors still expect the company to outpace the market in terms of growth. Meridian Funds mentioned Advanced Micro Devices, Inc. in its report. (NASDAQ:AMD). Investor letter from the fourth quarter of 2023 and shared:

Advanced Micro Devices, Inc. is a global semiconductor chip manufacturer specializing in central processing units (CPUs), which are considered the core element of most computing devices, and graphics processing units (GPUs), which accelerate operations performed on processors. We invested in 2018 when it was a mid-cap company that was struggling with years of underperformance due to lagging technology and loss of market share compared to rivals Intel and Nvidia. Our research found that the changes and investments made by current management under CEO Lisa Su ultimately resulted over several years in compelling technology that positioned AMD as a stronger competitor to Nvidia and that its latest products were superior to Intel’s. We invested in the belief that AMD’s valuation at that time did not reflect the potential of its technology leadership to generate significant market share gains and higher profits. This thesis has been developed for several years. This quarter, AMD revealed more details about its upcoming GPU products for the artificial intelligence market. The stock market reacted positively to expectations that AMD GPU servers will be a viable alternative to Nvidia. Although we have reduced our exposure to AMD as part of our risk management practice, we have maintained a position in the stock. We believe AMD will continue to gain share in large and growth markets and its valuation is reasonable relative to the potential for significantly higher earnings.

AMD in general takes 1st place on our list of the best feminist stocks to buy. You can visit 11 best feminist stocks worth investing in to see other feminist stocks that are on hedge funds’ radar. While we recognize AMD’s potential as an AI play, our belief is based on the belief that certain AI stocks have the potential to deliver higher returns, faster. If you’re looking for an AI stock that has more promise than AMD but trades at less than 5x earnings, check out our report on cheapest AI stocks.

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Disclosure: None. This article was originally published on Insider Monkey.