10 AI News Investors Probably Missed

2. Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is known for its semiconductor solutions, providing processors and GPUs for data centers, gaming, and embedded systems. The company emphasizes delivering high-performance computing products designed for AI-driven applications.

Northland Capital rated AMD as Outperform with a price target of $175, highlighting more upside than risks for 2025. AMD is projected to gain market share in AI GPUs, server CPUs, and PCs as challenges in embedded and gaming segments ease. AI revenue is estimated to grow from $5.2 billion in 2024 to $9.5 billion in 2025, with the MI325X competing well against Nvidia. In server CPUs, AMD’s Turin chips are expected to outperform Intel’s Granite Rapids, with non-AI data center revenue projected at $8.5 billion in 2025. In PCs, AMD may benefit from increased demand as Windows 10 support ends, potentially driving client revenue beyond $9 billion. The firm said:

“AMD remains one of our top picks for calendar year 2025. We anticipate AMD will continue gaining market share in AI GPUs, server CPUs, and PC clients as the headwinds from embedded and gaming segments subside. AMD’s AI strategy is driven by its roadmap and Total Cost of Ownership (TCO) advantages, while its server and client CPU products outperform competitors. The PC refresh cycle could be stronger than current expectations, presenting significant upside to calendar year 2025 estimates.”

Embedded revenue is recovering, with a projected $4 billion in 2025, while gaming revenue is expected to stabilize after a significant decline in 2024. Overall, AMD’s roadmap and competitive positioning suggest strong growth potential. “We believe AMD’s roadmap, strong competitive positioning, and market dynamics present significantly more upside to CY25 than risks,” the firm added.