10 Undervalued Stocks to Invest in According to Goldman Sachs

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

Forward P/E ratio: 16.81

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that designs and develops high-performance computing, graphics, and embedded processor solutions for consumer, enterprise, and data center applications. The company operates through segments including Computing and Graphics, which provides CPUs and GPUs for personal computers and gaming, and Enterprise, Embedded, and Semi-Custom, which supplies processors for servers, data centers, automotive, and custom solutions for gaming consoles. AMD competes with other semiconductor manufacturers in markets such as AI, cloud computing, gaming, and high-performance computing, leveraging advanced chip architectures and leading-edge manufacturing partnerships to drive innovation. The California-based company ranked four on our recent list of 10 Best Semiconductor Stocks to Buy for the AI Boom.

Advanced Micro Devices, Inc. (NASDAQ:AMD) achieved a transformative year in 2024, successfully ramping up MI300 production and exceeding $5 billion in revenue from a standing start. The company’s MI300 and ROCm software are now powering sophisticated AI models at major companies like Microsoft and Meta. AMD has demonstrated strong product roadmap execution with plans for MI350 this year and MI400 next year while making significant progress in software capabilities.

Advanced Micro Devices, Inc. (NASDAQ:AMD) sees a substantial market opportunity of approximately $500 billion and believes it can achieve tens of billions in annual revenue in this market. In the server business, AMD gained 5-6 points of server market share in the previous year and maintains confidence about further share gains in 2025. The client business has shown impressive performance with 58% year-on-year growth in the last quarter, driven by a strong product portfolio across desktop and notebook segments. The company maintains a disciplined approach to investment and innovation, focusing on leveraging its CPU platform, GPU platform, and software platform while expanding revenue faster than operating expense growth. With a forward P/E ratio of 16.81, AMD is one of Goldman Sachs’s undervalued stocks.