Advanced Micro Devices Inc. (AMD): Leopold Aschenbrenner Has a Bearish View on This Chip Stock

We just covered From Fired Researcher to $13.7 Billion King: How Leopold Aschenbrenner Broke the Hedge Fund World and Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks 5th on this list.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a new addition to the 13F portfolio of Situational Awareness LP. The fund declared a new stake in the company in filings for the first quarter of 2026. This stake consists of PUT bets worth close to 5 million shares. In the hedge fund world, Leopold Aschenbrenner is not alone in betting against AMD. Other elite money managers like Ken Griffin, Israel Englander, Sander Gerber, and Dmitry Balyasny have also declared bearish bets against the chip company. Of the $10.3 billion in Q1 2026 revenue for AMD, the data center segment accounted for $5.8 billion. However, NVIDIA continues to capture an estimated 90% to 95% market share of high-end AI data center GPUs.

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Elite money managers have argued that Advanced Micro Devices, Inc. (NASDAQ:AMD) is fighting an uphill battle against an entrenched ecosystem. The true moat for NVIDIA is not just the hardware, but the proprietary CUDA software ecosystem, which has millions of software developers locked in. Enterprise clients are proving hesitant to rewrite their entire software stacks to migrate to the open-source ROCm platform offered by AMD. Short-sellers calculate that AMD is being valued as an equal AI peer to NVIDIA, when it is actually collecting the residual overflow demand from hyperscalers who cannot secure enough NVIDIA allocation.

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 .

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