Is AMD the Best Stock to Buy According to Billionaire Ray Dalio?

Ladies and gentlemen, buckle up! We're diving into the world of semiconductors and AI, and there's one stock that's got everyone talking: Advanced Micro Devices, Inc. (AMD). Billionaire Ray Dalio, the mastermind behind Bridgewater Associates, has been making some big moves, and AMD is right at the center of it all. So, let's break it down and see if AMD is the best stock to buy right now!

First things first, let's talk about Ray Dalio's investment strategy. Dalio is all about stability and consistent growth. He's not one to jump on the latest fad; he's looking for companies that are leaders in their fields and have the potential for significant future growth. And guess who fits that bill? That's right, AMD!

AMD has been on a tear lately. In 2024, they reported record revenue of $25.8 billion, a 14% increase from the previous year. Their Data Center segment, which includes server-class CPUs, GPUs, AI accelerators, and other high-performance computing products, saw revenue nearly double to $12.6 billion. That's some serious growth, folks!

But it's not just about the numbers. AMD is also making strategic partnerships that are going to pay off big time. They've teamed up with IBM to deploy AMD Instinct MI300X accelerators to power generative AI and HPC applications on IBM Cloud. They're also working with Vultr to leverage AMD Instinct MI300X accelerators and AMD ROCm™ open software to power Vultr’s cloud infrastructure for enterprise AI development and deployment. These partnerships are going to drive long-term growth and market leadership.

Now, let's talk about earnings and profitability. In 2024, AMD reported a record net income of $5.4 billion on a non-GAAP basis, with diluted earnings per share of $3.31. That's a 26% increase in net income and a 25% increase in earnings per share compared to the previous year. These figures indicate strong profitability and consistent earnings growth, which are crucial for long-term investment stability.



But wait, there's more! AMD's gross margin for 2024 was 53% on a non-GAAP basis, up from 50% the previous year. The operating margin was 24%, also an increase from 21% in 2023. These margin improvements suggest that AMD is effectively managing its costs and improving operational efficiency, which is essential for sustained profitability.

So, what does all this mean for you, the investor? It means that AMD is a no-brainer! With its strong performance in the Data Center and Client segments, its strategic partnerships, and its focus on high-performance and adaptive computing, AMD is well-positioned to benefit from the increasing demand for high-performance and adaptive computing. And with Ray Dalio's endorsement, you know it's a stock to watch.

But don't just take my word for it. Do your own research, and see for yourself why AMD is the best stock to buy right now. Trust me, you don't want to miss out on this one!