12 Best Long-term Stocks to Invest in for High Returns

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

Average Upside Potential: 70.1%

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor company. In the server CPU market, the company has been gaining market share with its EPYC line of processors. 2024 was a transformative year for the company as it delivered record annual revenue and strong earnings growth. Notably, data center segment revenue came in at $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and EPYC processors.

Looking into 2025, Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see clear opportunities for continued growth based on the strength of its product portfolio and growing demand for high-performance and adaptive computing. S&P Global opines that the positive AI industry outlook and strong momentum for Advanced Micro Devices, Inc. (NASDAQ:AMD)’s AI products offer a strong foundation for its growth and margin expansion. The company recently launched its next-generation EPYC Turin server CPU, which is expected to further solidify its data center x86 market position, says the rating agency.

Furthermore, S&P Global opines that PC-related orders will improve in 2025. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s strategic and technological advancements continue to solidify its position as a leading competitor in the AI chip infrastructure. The company wrapped up 2024 with a robust Q4, posting record revenue (which was up 24% YoY), and accelerated earnings expansion while, at the same time, investing aggressively in AI and innovation for long-term growth and value creation.

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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