10 Must-Watch AI Stocks Dominating Headlines

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

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On February 5th, Citi analyst Christopher Danely downgraded the stock to “Neutral” from Buy with a price target of $110, down from $175. The analyst told investors in a research note that the company reported “decent” results propelled by higher central processing unit sales. The company didn’t provide an AI revenue guidance, and it seems that its AI revenue is flat to down for the first half of 2025 with margin dilution. The firm also said that there could be an inventory build in CPUs due to the growth of AMD and Intel (INTC) CPUs in Q4. Due to this reason, it has lowered its estimates and downgraded the stock.

“We downgrade AMD from Buy to Neutral given slowing AI growth (lower multiple), poor leverage, and risk of an inventory correction”.