Advanced Micro Devices (AMD) stock has gained over 9% on Wednesday following bullish comments from Wedbush and HSBC analysts. Also, both firms raised their price targets on AMD stock. The move comes in response to the chipmaker’s deal to sell chips to Oracle (ORCL). Thus, this might be the right time to consider investing in AMD, especially through ETFs that offer diversified exposure without the risk of holding the stock directly.
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Investors seeking exposure to AMD stock may consider the Wedbush ETFMG Video Game Tech ETF (GAMR) and the Invesco AI and Next Gen Software ETF (IGPT). Let’s take a deeper look at these two ETFs.
Wedbush ETFMG Video Game Tech ETF
The GAMR ETF tracks the VettaFi Video Game Leaders Index, which includes companies involved in game development, publishing, hardware, and streaming. It gives investors exposure to the fast-growing video game and eSports industry. Importantly, AMD accounts for 13.47% of GAMR’s total holdings.
Some of the top holdings in the GAMR ETF include Nvidia (NVDA), Microsoft (MSFT), and Meta Platforms (META). Overall, the ETF has $50.62 million in assets under management (AUM) and an expense ratio of 0.59%. Over the past six months, the GAMR ETF has generated a return of 54.71%.
On TipRanks, GAMR has a Strong Buy consensus rating based on 17 Buys and five Holds assigned in the last three months. At $111.86, the average GAMR ETF price target implies 13.22% upside potential.
Invesco AI and Next Gen Software ETF
The IGPT ETF tracks the STOXX World AC NexGen Software Development Index. It invests in global tech leaders focused on AI, automation, and software innovation. AMD stock constitutes 9.8% of the ETF’s holdings.
Apart from AMD, some of the top stocks in the IGPT ETF are Alphabet (GOOGL), Micron (MU), and Intuitive Surgical (ISRG). Overall, the ETF has $582.75 million in AUM. Also, it has an expense ratio of 0.56%. The IGPT ETF has returned 49.14% in the past six months.
Turning to Wall Street, the ETF has a Moderate Buy consensus rating. Of the 102 stocks held, 70 have Buy ratings, 31 have Hold ratings, and one has a Sell rating. At $65.06, the average IGPT ETF price target implies a 15.37% upside potential.
Concluding Thoughts
ETFs provide indirect exposure to AMD, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider IGPT and GAMR, as these ETFs offer exposure to AMD stock.