Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the Fund (Investor Shares) returned 4.85% (net of fees) underperforming the Russell 1000 Growth Index’s 7.07% gain. For the year, the fund returned 26.85% compared to Russell 1000 Growth’s 33.36% return. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Growth Equity Fund emphasized stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through Data Center, Client, Gaming, and Embedded segments. The one-month return of Advanced Micro Devices, Inc. (NASDAQ:AMD) was -6.28%, and its shares lost 40.12% of their value over the last 52 weeks. On March 19, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $106.23 per share with a market capitalization of $173.163 billion.

Parnassus Growth Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:

"Advanced Micro Devices, Inc. (NASDAQ:AMD) stock declined amid uncertainty over demand for processors, competition from NVIDIA and the company’s recently announced plans to reduce its workforce and reallocate investment among business segments."

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is in 19th position our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 96 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the fourth quarter which was 107 in the previous quarter. While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Advanced Micro Devices, Inc. (NASDAQ:AMD) and shared the list of high growth large cap stocks to invest in. In addition, please check out our hedge fund investor letters Q4 2024 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.