In an interesting turn of events, retail investors have injected a staggering US$11 billion into equities since April 2, 2025. This surge in investment followed the Trump administration's announcement of reciprocal tariffs, as reported by Bloomberg, which cited data up to the close of trading on April 9.

According to Bloomberg, individual investors are showing resilience and determination, as they navigate the tumultuous waters of the volatile US markets. The report highlighted insights from Emma Wu of JPMorgan Chase & Co., who noted that despite the chaotic market conditions, many retail traders have adhered to a 'buy-the-dip' strategy. This approach has allowed them to fare better than the broader market trend, albeit portfolios are still reportedly far from breakeven at this stage.

The World Economic Forum (WEF) also released research indicating that financial priorities among investors have shifted towards addressing immediate needs. The findings showed a notable increase in investors focusing on emergency savings, with 51% of individuals prioritizing this in 2024, up from 41% in 2022. Conversely, those emphasizing the importance of having sufficient retirement savings saw a decline from 48% to 42%. Dean Frankle, Managing Director and Partner at BCG, emphasized that increased participation of individuals in capital markets is crucial for long-term financial health.

Moreover, the WEF's survey revealed that retail investors are increasingly viewing cryptocurrencies as more approachable compared to traditional investments such as exchange-traded funds (ETFs), mutual funds (MFs), stocks, and bonds. The research indicated that 29% of respondents shy away from stocks due to a lack of understanding, while only 24% expressed similar sentiments about cryptocurrencies. Notably, among investors under 44 years old who hold cryptocurrencies, over half have allocated at least a third of their portfolios to this digital asset class.

The Global Retail Investor Outlook 2024, conducted by the World Economic Forum, underscores a shift towards a younger demographic in retail investing. The research, which encompasses 13 economies, found that 30% of Generation Z individuals start investing during their early adulthood, compared to merely 9% of Generation X and 6% of Baby Boomers. By the time they enter the workforce, a remarkable 86% of Gen Z have educated themselves about personal investing, in contrast to just 47% of Baby Boomers, signifying a significant generational shift in financial behaviors.

Additionally, we have compiled a detailed analysis of the 12 Best WallStreetBets Stocks to Buy According to Hedge Funds. In this article, we will also explore where Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks compared to other top WallStreetBets stocks favored by hedge fund managers.

Our methodology for identifying these stocks involved a thorough examination of the WallStreetBets forum on Reddit, where we identified trending stock picks. We then narrowed the list down to those that are popular among hedge funds and ranked them based on hedge fund sentiment as of the fourth quarter of 2024.

Why do we focus on stocks that hedge funds are interested in? The rationale is straightforward: our research suggests that emulating the top stock picks from successful hedge funds can yield favorable investment outcomes. Our quarterly newsletter has consistently selected 14 small-cap and large-cap stocks, achieving an impressive 373.4% return since May 2014, significantly outperforming its benchmark by 218 percentage points.

So, is Advanced Micro Devices, Inc. (NASDAQ:AMD) one of the best WallStreetBets stocks to consider buying according to hedge funds? As a semiconductor company, AMD has been strategically targeting high-volume AI workloads, which could offer considerable long-term benefits. With the increasing prevalence of AI applications, there is a growing demand for cost-effective solutions that balance performance and efficiency. Furthermore, AMD has been successfully gaining market share in the traditional CPU segments for both servers and client devices.

For the fiscal year 2025, AMD anticipates robust growth opportunities, thanks to its strong product portfolio and the rising demand for high-performance and adaptive computing solutions. On April 15, the company completed its initial evaluation concerning a new license requirement imposed by the US government for exporting certain semiconductor products to China (including Hong Kong and Macau) and D:5 nations, which affects its MI308 products. The Export Control is expected to potentially lead to charges of up to approximately $800 million in inventory, purchase commitments, and related reserves.

Despite these challenges, AMDs growth outlook remains promising, particularly in the AI and data center markets. The company's focus on developing competitive AI accelerators and enhancing its presence in high-performance computing positions it well for future success. Artisan Partners, an investment management firm, shared insights in its Q4 2024 investor letter, noting that AMD was one of their top detractors due to a disappointing stock performance that did not reflect its fundamental advancements.

They highlighted AMD's successful entry into the market with its MI300 graphic processing unit (GPU) chip and raised its 2024 AI-related revenue guidance from $4.5 billion to $5 billion. However, AMDs shares have faced pressure for two primary reasons. The first is the emergence of custom AI accelerator chip solutions from competitors such as Broadcom and Marvell, presenting alternatives to NVIDIA and AMD's GPU offerings. While this competitive threat was initially underestimated, excitement remains about AMDs future prospects. The firm anticipates that the AI market will expand to between $400 billion and $500 billion over the next three years, up from $100 billion in 2024. They project a decline in NVIDIAs market share from around 90% in 2024 to between 60% and 80% by 2027, with AMD's share increasing from 5% to 10%20% in that same period.

Additionally, while AMD's data center revenues have more than doubled in the past two years, other segments like gaming and embedded products have faced significant declines, compounding the challenges the company faces. As the data center business continues to expand and cyclical segments recover, analysts expect AMD to achieve stronger earnings growth.

In conclusion, AMD ranks sixth on our list of the best WallStreetBets stocks favored by hedge funds. While we acknowledge AMD's potential as an investment, we believe that some undervalued AI stocks present greater opportunities for higher returns over a shorter timeframe. For those seeking deeply undervalued AI stocks that may outperform AMD, we recommend checking out our report on the most promising options available at less than five times their earnings.

Stay tuned for our upcoming articles on the best AI stocks to buy now and the top stocks favored by billionaires.