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We recently published a list of 8 Best Machine Learning Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against other best machine learning stocks to buy according to hedge funds.
Earlier this month, the president of Potomac Wealth Advisors, Mark Avallone, discussed the tech sector’s investment potential. We talked about his sentiment in more detail in one of our other articles, 12 Best NASDAQ Stocks To Buy in 2025. Here’s an excerpt from it:
“He noted that market rates have surged to all-time highs, with a significant increase of 1,800 points since October 2023. Avallone emphasizes that tech stocks, particularly cash-flowing mega-cap and large-cap companies, have shown resilience against rising rates, attributing this to improved operational efficiencies and ongoing technology spending even in a slowing economy.”
Just like Avallone, several analysts hold a positive outlook for tech stocks as we go into 2025. Daniel Ives, Global Head of Technology Research at Wedbush Securities, thinks that the AI revolution is driving this strength in tech. On January 13, he appeared on CNBC and discussed the tech sector in light of rising interest rates and a strengthening dollar. He noted that the 10-year Treasury yield is currently at 4.75%, which is exerting pressure on tech stocks. Despite this, Ives expressed optimism about the sector’s potential for growth and suggested that the current environment presents opportunities to invest in leading companies. He emphasized that capital expenditures are robust on the consumer side and indicate stronger-than-expected earnings ahead. Ives believes that we are only halfway through the bull market, which he views as a positive sign for tech stocks moving forward.
Ives discussed Palantir Technologies, which has faced selling pressure despite being a top S&P 500 performer last year. He warned that overlooking it due to high valuation could mean missing key market opportunities, similar to Oracle and Salesforce, especially with $2 trillion in expected AI capital expenditures. Ives also highlighted the impact of a rising dollar on tech, particularly Apple’s vulnerability, while remaining bullish on the sector. He emphasized the need for diversification, citing Microsoft and NVIDIA as indicators for AI growth.
His optimism about the tech sector highlights opportunities as investors navigate this landscape.
Methodology
We first sifted through ETFs, online rankings, and internet lists to compile a list of the top ML stocks. We then selected the 8 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q3 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.