Guidance Upside Drives Advanced Micro Devices (AMD) Higher, Hurting Non Owners

Guidance Upside Drives Advanced Micro Devices (AMD) Higher, Hurting Non Owners Soumya Eswaran Wed, September 9, 2026 at 5:36 PM GMT+2 3 min read AMD American Century Investments, an investment management company, released its first-quarter 2026 investor letter for the "American Century Investments Focused Dynamic Growth Fund". The letter can be downloaded here . U.

S. stocks advanced sharply with double-digit quarterly gains largely due to robust earnings, resilient economic data, and momentum in AI-related stocks. However, there was a slight pullback in June as momentum waned and investors anticipated potential interest rate hikes by the Federal Reserve.

Growth and AI stocks outperformed value stocks, while large-cap companies generally surpassed small- and mid-cap stocks. Underperformance was noted in healthcare and communication services, while industrials, particularly in aerospace and defense, contributed positively to performance. The fund's investor class returned 16.

38%, slightly below the Russell 1000 Growth Index's 16. 74%. The investment approach focuses on bottom-up financial analysis to identify large-cap companies with long-term earnings growth potential, while aiming to mitigate non-financial risks.

Please review the Fund's top five holdings to gain insights into its key selections for 2026. In its second-quarter 2026 investor letter, American Century Investments Focused Dynamic Growth Fund highlighted Advanced Micro Devices, Inc. (NASDAQ: AMD ) as a key contributor.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading semiconductor company that designs and manufactures AI accelerators, microprocessors, and graphics processing units. On September 08, 2026, Advanced Micro Devices, Inc.

(NASDAQ:AMD) closed at $505. 74 per share, reflecting a market capitalization of $825. 61 billion.

Over the past month, Advanced Micro Devices, Inc. (NASDAQ:AMD) returned 7. 72%, but its shares are up 226.

08% over the past year. American Century Investments Focused Dynamic Growth Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2026 investor letter: "Advanced Micro Devices, Inc.

(NASDAQ:AMD). Not owning the chip designer detracted as shares advanced after the company issued stronger-than-expected guidance. The stock benefited from accelerating artificial intelligence and data center chip demand, with growth across both graphics processing units and CPUs.

" Is Advanced Micro Devices (AMD) One of the Top 10 Dividend Stocks to Buy According to Reddit? Advanced Micro Devices, Inc. (NASDAQ: AMD ) ranks 20 on our list of  40 Most Popular Stocks Among Hedge Funds Heading Into 2026 .

As per our database, 164 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ: AMD ) at the end of the second quarter which was 134 in the previous quarter.  While we acknowledge the potential of Advanced Micro Devices, Inc.

(NASDAQ: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 . Story Continues In another article , we discussed Advanced Micro Devices, Inc.

(NASDAQ:AMD) and shared Impax US Sustainable Economy Fund's views on the company. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years .

This article is originally published at Insider Monkey .