Jim Cramer Says He “Certainly Would” Start a Position in Advanced Micro Devices If He Didn’t Own NVIDIA

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the stocks Jim Cramer evaluated, along with the fragile food market. A caller asked if Cramer thinks it is advisable to start a position in the stock, and he said:

Alright, now, this is very interesting because I have, because we own such a big position in NVIDIA, I don’t want to own its biggest competitor, which is AMD. But you know what, if I didn’t own NVIDIA, I most certainly would. It is a dog fight, and Lisa Su is fabulous.

Photo by Adam Nowakowski on Unsplash

Advanced Micro Devices, Inc. (NASDAQ:AMD) makes processors, graphics cards, and AI chips for computers, servers, and gaming systems. The company’s products include Ryzen, Radeon, and EPYC. White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2025 investor letter:

The top 5 positions for the White Falcon portfolio are precious metal royalty companies, AMD, NFI Group, EPAM, and Nu Holdings. Advanced Micro Devices, Inc. (NASDAQ:AMD) designs a broad range of digital semiconductors serving PCs, gaming consoles, and data centers, including the rapidly expanding AI market. Under CEO Lisa Su, the company was pulled back from the brink of bankruptcy and reshaped into a high‑performance computing leader. Over the past decade, AMD has steadily taken market share from Intel and emerged as a credible No. 2 in GPUs behind Nvidia. Given AMD’s volatility, we initiated a position in November 2022 and added to it again in April 2025. Management has guided to approximately $10 in Earnings per share (EPS) for FY2027E and more than $20 in EPS by 2030E. If the company delivers on these targets, then it should be a $400+ stock in a few years which is roughly 75% higher than current levels.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years 

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