Harbor Capital Appreciation Fund, an investment management firm, has 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 with a market capitalization of at least $1 billion at the time of investment. U.S. stocks delivered strong results in the third quarter, driven by continued momentum in AI 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% during the quarter, compared to 10.51% for the Russell 1000® Growth Index and 8.12% for the S&P 500 Index. Additionally, please see the fund’s top five holdings for its top picks in 2025.
In its third quarter 2025 investor letter, Harbor Capital Appreciation Fund highlighted stocks such as Advanced Micro Devices, Inc. (NASDAQ: AMD). Advanced Micro Devices, Inc. (NASDAQ: AMD) is a semiconductor company operating in Data Center, Client, Gaming and Embedded segments. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s one-month return was 0.37% and its shares have gained 70.27% of their value over the past 52 weeks. On December 24, 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) stock closed at $215.04 per share, with a market cap of $350.094 billion.
Harbor Capital Appreciation Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q3 2025 Investor Letter:
“We have initiated a position in Advanced Micro Devices, Inc. (NASDAQ: AMD), a leading provider of high-performance computing and AI solutions. The company’s refined product roadmap and momentum with major cloud providers highlight its growth prospects. Continued innovation in data centers and AI accelerators, widespread adoption in high-end markets, and disciplined execution position Advanced Micro Devices as a compelling long-term investment in rapidly growing technology markets.
Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks 19th 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 a hugely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the reshoring trend, check out our free report on the best AI stock in the short term.
