10 AI News Investors Should Not Miss

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

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American multinational corporation that specializes in manufacturing semiconductor devices used in computer processing. By integrating technology across CPUs, GPUs, and NPUs, it strives to create a strong ecosystem that supports the development of powerful AI applications.

Even though Advanced Micro Devices, Inc. (NASDAQ:AMD) has failed to make a significant dent in the AI chips market, Piper Sandler’s Harsh Kumar continues to view AMD as a “top large-cap pick”. On October 25, the analyst rated AMD shares as Overweight (i.e. Buy), along with a $200 price target. This indicates a potential 26% upside in the coming months. The analyst’s positivity comes from AMD’s management’s comments regarding the GPU outlook with the prospect of MI300 adoption setting the scene for “outperformance in the data center segment”. He expects the company to exceed the $5 billion annual revenue goal for its GPUs, driven by “implied GPU ramp”. The analyst states that there were also supply constraints at the beginning of the year, but the momentum is building again with the introduction of MI325.

 “All in all, AMD has taken some significant steps in software/model conversion to eliminate the gap relative to competition. We feel that with the closure of the ZT Systems deal in 1H25, AMD will close another gap to NVDA in rack level performance.”