11 Best Reddit Stocks to Invest In

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

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company. Aaron Rakers, an analyst from Wells Fargo, reiterated a “Buy” rating on the company’s stock. The associated price target was same at $140.00. The analyst’s rating is backed by a combination of factors that highlight the company’s strategic positioning and growth prospects. One of the main reasons is Advanced Micro Devices, Inc. (NASDAQ:AMD)’s focus on expanding its data center GPU offerings, mainly with the upcoming ramp of the CDNA 4-based MI350X, which can enhance AI training capabilities. The analyst opines that this move forms part of a broader portfolio strategy targeted at capturing significant share in the data center market over time.

Furthermore, Advanced Micro Devices, Inc. (NASDAQ:AMD)’s momentum in the server CPU market, fueled by healthy enterprise demand and recovery in the cloud sector, remains a critical growth driver. The company’s capability to maintain and enhance its market share, mainly in hyperscale cloud applications, aids the positive outlook. The analyst sees Advanced Micro Devices, Inc. (NASDAQ:AMD) as having an attractive risk-reward profile considering its healthy positioning and strategic initiatives in the data center and server markets. Furthermore, as businesses and consumers continue to upgrade their systems, the company has a chance to capture a significant share of the PC CPU market. Notably, the refresh cycle is anticipated to fuel above-seasonal growth in the PC segment.