Everyone’s been chiming in on the AI bubble, but you wouldn’t spot any worrisome signs from Point72’s Q3 buying spree.

Guided by billionaire hedge fund manager Steve Cohen, the hedge fund doubled down on AI hardware and infrastructure during the quarter, growing positions in Advanced Micro Devices (AMD), Nvidia, Broadcom, and Teradyne.

The headline grabber, though, was AMD, where Point72 lifted its stake by nearly 30%, backing the business as it becomes a credible challenger in the AI chip race.

At a moment when skeptics are warning valuations are getting overheated, Point72’s portfolio adjustments show that the AI growth story still has legs.

Cohen’s playbook has always been about identifying sustainable trends early, and Point72’s Q3 trades make it clear the fund views AI demand as a secular long-term tailwind.

<em>Cohen doubles down on a AMD stock, signaling he’s not buying the bubble narrative</em>.Photo by Newsday LLC on Getty Images Cohen doubles down on a AMD stock, signaling he’s not buying the bubble narrative.Photo by Newsday LLC on Getty Images

Steven A. Cohen is one of the most influential hedge fund managers on Wall Street.

He’s the kind whose moves ripple across the stock market. Before launching Point72, he built his legacy at SAC Capital, and now operates a massive $40-$42 billion multi-strategy portfolio.

The firm’s portfolio spans thousands of positions, everything from traditional stocks to the more sophisticated “options.”

Fund manager buys and sells

All of Cohen’s holdings, though, reflect his core philosophy of staying flexible and opportunistic, while never relying on a single bet.

That approach has been mighty successful, including an 18% gain in Q2 2025 with its top holdings surging over 100% in the past three years,  blowing past the S&P 500.

Despite his success and ownership of the New York Mets, Cohen has kept a low public profile. Still, he’s had enough pop-culture pull to inspire “Billions” protagonist Bobby Axelrod.

Point72’s Q3 moves mirror Cohen’s conviction in the AI trade.

In fact, Cohen said the following of AI.

So, as the bubble talk dominates headlines, the firm went shopping across the chip stack, building up its positions.

Though Point72 locked in profits on a few of the big winners, it’s still positioning for another leg higher in the AI ramp-up.

Nonetheless, this year’s wild AI rally has Mr. Market split into two camps: the “this is a bubble” crowd and the “we’re just getting started” believers.

Related: Legendary investor Ray Dalio drops most shocking take on stock market

Nvidia surging over 35% in the past six months, though, isn’t calming anyone down, and now even the biggest tech leaders disagree. Google CEO Sundar Pichai warns no one can escape a downturn, reports AI Magazine. Meanwhile, according to The Economic Times, Nvidia CEO Jensen Huang feels AI demand is as real as it gets.

However, investors are divided, with Michael Burry shorting the hype, as Stanley Druckenmiller and Warren Buffett’s firms pile into AI names instead.

  • AMD:Stake increased 30% to 1.74 million shares ($355 million).

  • Nvidia: Up 12.8% to 7.24 million shares ($1.3 billion).

  • Broadcom: Jumped 187.8% to 1.59 million shares ($540 million).

  • Teradyne: The shock move, up 1,370% to 4.09 million shares ($649 million).

  • Amazon: Reduced 35%, down to 3.12 million shares.

  • Arista Networks: Cut 20% after strong gains.

Point72’s aggressive move in AMD is a standout, but it makes perfect sense when we examine its underlying fundamentals.

For perspective, AMD delivered a record $9.25 billion in Q3 sales, up 36% year over year, blowing past expectations.

Its data-center business in particular, which covers AI accelerator chips, posted a whopping $4.3 billion in sales (a 22% bump). Those results have everything to do with the soaring demand for EPYC server processors and their Instinct AI GPUs.

Related: ‘Big Short’ Michael Burry fires shots at major AI stock

That strength helped AMD project $9.6 billion in Q4 sales, tracking comfortably above the consensus, as CEO Lisa Su pointed to a “rapidly scaling data center AI business.”

The strategic wins were equally important. That said, here are AMD’s biggest recent AI hyperscaler wins:

  • OpenAI mega-deal: Reuters reported that OpenAI struck a multi-year partnership in deploying up to 6 GW of AMD Instinct GPUs, a deal that’s likely to be worth tens of billions over time.

  • Oracle AI supercluster: Oracle will launch an enormous AMD-powered AI supercluster with 50,000 MI450 GPUs in Q3 2026, expanding through 2027.

  • Microsoft Azure rollout: Azure is now running MI300X GPUs in production for Azure OpenAI services, positioning AMD behind Microsoft’s highest-volume AI workloads.

Investors responded in kind, with the stock surging 69% year to date, and over 15% in the past month, even outperforming Nvidia. In the past month, though, the stock’s taken a hammering, dropping 14.4%, stirring bubble fears.

Related: Cathie Wood buys the dip in Nvidia-backed stock

This story was originally published by TheStreet on Nov 25, 2025, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.