10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst

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

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. It offers AI-enabled chips for several industries, including data center and cloud, personal computers, adaptive and embedded devices, and gaming. The company recently revealed future plans for AI products, including the AMD Instinct MI325X accelerators, with planned availability in Q4 2024, delivering memory capacity with ultra fast speeds for AI computations, as well as the next-generation AMD CDNA 4 architecture, expected in 2025, that will power the AMD Instinct MI350 Series and is expected to drive up to 35x better AI inference performance. AI data center demand will likely help the firm sell these products at high margins.

Bernstein analyst Stacy Rasgon had alluded to the developments earlier this year when he predicted that Advanced Micro Devices, Inc. (NASDAQ:AMD) was turning towards an annual product model, much like smartphones and automotive industries. However, he cautioned that it would be harder for AMD to accomplish this than rival NVIDIA because of the difference in scale between the two firms. Rasgon underlined that AMD probably had no choice in the matter because of the acceleration and roadmaps that NVIDIA had already announced. Rasgon added that the new MI325X accelerators, discussed above, would help AMD compete with the H200 product from NVIDIA but would likely fall short of competing with the new Blackwell chips of the latter. Bernstein has a Hold rating on the shares with a price target of $150.