10 AI Stocks to Watch Amid DeepSeek Impact

4. Advanced Micro Devices Inc (NASDAQ:AMD)

Number of Hedge Fund Investors: 107

Oliver Blanchard from The Futurum Group gave some bullish comments about Advanced Micro Devices Inc (NASDAQ:AMD) in a latest program on Schwab Network. The analyst believes Advanced Micro Devices Inc (NASDAQ:AMD)’s business direction is positive:

“I think AMD is interesting. I’ve seen, you know—unpopular opinion maybe—I’ve seen some financial analysts sort of downgrade them a little bit. I think they have a really good play in data center and also in endpoints, so basically client PC. I like where they’re going with their technology.”

Despite the latest weak data center results from the company, Advanced Micro Devices (NASDAQ:AMD) bulls believe the market should stop comparing the company’s chips with Nvidia. Advanced Micro Devices (NASDAQ:AMD) will continue to benefit from organic growth catalysts in this segment despite the competition from Nvidia. According to Goldman Sachs Research, global data center demand could surge by 160% by 2030. In the U.S., data centers are projected to use 8% of total power by 2030, up from 3% in 2022. McKinsey estimates that adding the required U.S. capacity will need over $500 billion in infrastructure investment by the decade’s end.

White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q4 2024 investor letter:

“During the year, we sold half of our stakes in Advanced Micro Devices, Inc. (NASDAQ:AMD) and Nu Holdings as they reached their intrinsic values. However, the decline in these stocks toward the end of the year provided us with an opportunity to add to our positions. In AMD’s case, the market has been disappointed by the company’s potential shortfall in AI chip revenues, which were previously forecasted to reach $10 billion in 2025. However, the factors required to justify the investment when the stock is priced at $220 per share are vastly different from those needed when the stock is at $120 per share. Yes, AMD’s AI chips and associated software are not competitive with Nvidia but this is now known and in the valuation. We believe this hyperfocus on AI ignores AMD’s other businesses where they continue to take advantage of Intel’s missteps. Importantly, AMD retains the potential to capture a small share of the AI chip market, which, given the market’s massive size, could be highly impactful for the company.”