10 Most Profitable Stocks of the Last 10 Years

7. Advanced Micro Devices (NASDAQ:AMD)  

10-Year Net Income CAGR: 32.53%  

TTM Net Income: $1.35 Billion  

Number of Hedge Fund Investors: 108  

Advanced Micro Devices (NASDAQ:AMD) is a semiconductor company that develops high-performance computing and graphics solutions. The company’s processors are used in consumer electronics, gaming consoles, and data centers, with major clients including Sony, Microsoft and Hewlett-Packard.

Advanced Micro Devices (NASDAQ:AMD) has significantly expanded its market share through advances in processors for both consumer and enterprise applications. The company is also a leader in the AI space, with strong growth potential. Advanced Micro Devices (NASDAQ:AMD) MI300 accelerator is designed to compete with Nvidia’s H100 AI chip, and the company plans to release new AI chips annually to stay competitive in the industry.

On August 19, Advanced Micro Devices (NASDAQ:AMD) entered into a definitive agreement to acquire ZT Systems, a provider of AI infrastructure for computing companies, in a deal valued at $4.9 billion. This acquisition is expected to enhance the company’s AI capabilities and provide industry-leading systems expertise, enabling optimized rack-scale solutions. ZT Systems’ extensive experience in designing and optimizing cloud computing solutions will help cloud and enterprise customers accelerate the deployment of AMD-powered AI infrastructure at scale. The transaction is expected to be complete by the end of 2025.

Advanced Micro Devices (NASDAQ:AMD) presents a compelling investment opportunity in the AI space, with strong growth potential. The company’s leadership in AI-specific semiconductors and custom chip designs solidifies its position as a key industry player. The company’s earnings are projected to rise by 25.08% this year. Industry analysts have a consensus Buy rating, with an average target price of $187.69, suggesting an 18.03% upside potential from current levels.