Harbor Capital Appreciation Fund, an investment management company, released its Q3 2025 investor letter. A copy of it can be downloaded here. The Harbor Capital Appreciation Fund focuses primarily on investing in equity securities, targeting U.S. companies that have a market capitalization of at least $1 billion at the time of investment. US stocks delivered strong results in the third quarter, boosted by continued AI momentum and strong corporate earnings. The Federal Reserve’s interest rate cut also supported the market at the end of the quarter. The fund returned 5.11% for the quarter, compared with 10.51% for the Russell 1000® Growth Index and 8.12% for the S&P 500 Index. Also, check out the fund’s top five holdings to learn your best picks in 2025.
In its Q3 2025 investor letter, Harbor Capital Appreciation Fund highlighted stocks like Advanced Micro Devices, Inc. (NASDAQ: AMD). Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company operating across the data center, client, gaming, and embedded segments. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s monthly performance was 0.37% and its shares gained 70.27% of its value in the last 52 weeks. On December 24, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $215.04 per share, with a market capitalization of $350.094 million.
Harbor Capital Appreciation Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2025 investor letter:
“We started a position in Advanced Microdevices, Inc. (NASDAQ:AMD), a leading provider of artificial intelligence and high-performance computing solutions. The company’s improved product roadmap and momentum with major cloud providers highlight its growth prospects. “Continued innovation in data centers and AI accelerators, broad adoption in premium markets, and disciplined execution position Advanced Micro Devices as a compelling long-term investment in rapidly expanding technology markets.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks #19 on our list of the 30 most popular stocks among hedge funds. According to our database, 115 hedge fund portfolios held Advanced Micro Devices, Inc. (NASDAQ:AMD) at the end of the third quarter, up from 113 in the previous quarter. While we recognize 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’s also benefiting significantly from Trump-era tariffs and the offshoring trend, check out our free report on best short-term AI stock.