12 Best NASDAQ Stocks To Buy in 2025

9. Advanced Micro Devices Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 107

Advanced Micro Devices Inc. (NASDAQ:AMD) develops cutting-edge processors and graphics chips for applications like data centers, gaming, and embedded systems. This semiconductor manufacturer focuses on creating high-performance computing solutions that can power the demands of AI.

The company leads in chiplet technology, which uses smaller chips that interconnect to form a comprehensive system-on-a-chip (SoC). This approach accelerates development by allowing independent design and manufacturing. This has resulted in yield rates over 80%, compared to Intel’s 60%. Chiplet systems reduce costly manufacturing defects and can lower production costs by ~45%.

The chiplet market is expected to reach $411 billion by 2035. Advanced Micro Devices Inc.’s (NASDAQ:AMD) chiplet technology now includes a new multi-chip stacking approach that will improve efficiency in future Ryzen SoCs. These are processors that integrate a CPU, GPU, and other essential components onto a single chip. S&P Global recently upgraded Advanced Micro Devices Inc. (NASDAQ:AMD) to ‘A’ credit rating from ‘A-‘. This was because of strong x86 and AI chip sales, driven in part by the chiplet technology, projecting continued growth through 2025.

In the third quarter of 2024, the data center segment’s revenue surged 122% year-over-year to a record $3.5 billion, contributing over half of Advanced Micro Devices Inc.’s (NASDAQ:AMD) total revenue of $6.8 billion. The company’s advancements in chiplet technology are pivotal to the success of its high-performance data center products, positioning it for sustained growth. However, Goldman Sachs lowered its rating on the company to Neutral from Buy and slashed its price target on the shares to $129 from $175. This was due to a lower demand for PC and server chips, along with its weaker-than-expected revenue from data centers.