With the first half of 2024 wrapped up, Bank of America (BofA) securities analysts provide a list of top-performing companies - what they describe as the "best of breed" - for investors to consider going into the third quarter of this year. These companies exhibit solid fundamentals in their respective industries, and specifically boast a strong earnings history, with forecasts calling for future growth. 

Notably, many of these companies are set to outperform due to significant investments in artificial intelligence (AI). Leveraging AI for enhanced productivity and monetizing AI-powered products is a growing trend across various sectors, including cybersecurity, e-commerce, industrials, and communication services.

These top-quality companies have shown noticeable resilience to the various market headwinds in the past few years, and BofA suggests they not only offer investors the prospect of long-term growth, but also some protection from potential short-term volatility. For investors seeking standout investment ideas this July, here are 3 highly rated stocks from BofA's best-in-class lineup.

#1. Advanced Micro Devices

Based in California, Advanced Micro Devices AMD is a semiconductor giant that makes computer processors and graphic cards for various markets. The company's AI-powered chips are used for gaming, PCs, and data solutions. 

AMD's commitment to innovation extends beyond hardware. They actively collaborate with software developers, researchers, and industry partners to optimize performance, enhance security, and drive AI and machine learning advancements. AMD is considered secondary to Nvidia in the AI chip market. While slightly less powerful than Nvidia's, its offering is more affordable. The company has a huge market cap of $259 billion.

Despite a turbulent 2022, where AMD stock plummeted by over 54%, the company made a remarkable turnaround in 2023, with a surge of more than 45%, driven by strong earnings results. 

Shares of AMD are still climbing, up 10% this year and trading at 48 times forward earnings, which is still cheaper than its peers, such as Nvidia NVDA. I believe the stock has significant potential to excel and provide substantial capital appreciation for investors.

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