Advanced Micro Devices (AMD) Surges on Strong AI Chip and Data Center Processor Demand

Impax Asset Management’s “Impax US Sustainable Economy Fund” released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The fund reported that equity markets remained volatile during the quarter amid concerns over elevated valuations and financing for large-scale data center investments, although the portfolio modestly outperformed the Russell 1000 benchmark on the back of sustainability tilts and stock-specific gains, particularly within Health Care and Financials. On an annual basis, the Fund’s Institutional Class delivered a total return of 16.00% in 2025, compared to 17.37% for the Russell 1000, reflecting the impact of sector allocation and company-level developments such as gains in pharmaceutical and payment processing holdings and weakness in certain Consumer Staples names. Management noted that performance was influenced more by changing market leadership than macroeconomic deterioration, while maintaining a cautiously optimistic outlook supported by falling interest rates, resilient corporate earnings, and continued investment in structurally advantaged businesses positioned to benefit from the transition toward a more sustainable economy. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks like Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) designs high-performance computing and graphics solutions, benefiting from rising demand for AI-optimized chips and data center processors amid accelerating digital infrastructure build-out. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -18.70% while its shares traded between $76.48 and $267.08 over the last 52 weeks. On February 17, 2026, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at approximately $203.08 per share, with a market capitalization of about $329.28 billion.

Impax US Sustainable Economy Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) (Information Technology, Semiconductors) is owned for its exceptional Corporate Resilience profile and attractive sustainability opportunity set in areas like the Digital Infrastructure build-out. The stock surged on the back of strong demand for AI-optimized chips and data center processors, which significantly outperformed market expectations. The company also benefited from major partnerships with ‘hyperscale’ cloud computing providers and record sales of graphics processing units (GPUs) for AI workloads, reinforcing investor confidence in its growth trajectory.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 115 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter, which was 113 in the previous quarter. While we acknowledge the risk and potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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.

In another article, we covered Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of stocks that were discussed by Jim Cramer. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.