12 Best S&P 500 Stocks to Invest in According to Analysts

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

Average Share Price Upside Potential as of January 31: 51.52%

Market Cap: $188.17 billion

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the world’s leading computer processors and related technologies manufacturers. Its main products include microprocessors, graphic processors, personal computers, workstations, and embedded system applications. The company has also recently expanded to new markets such as high-performance computing and data centers.

In January this year, AMD announced that its Ryzen AI PRO processors will power the new Dell Pro devices, offering improved efficiency, privacy, personalization, and connectivity, as the most recent generation of these processors are designed to enhance business productivity with Copilot+ features. This marked a significant milestone in the partnership between the two companies.

During Q3 2024, Advanced Micro Devices, Inc. (NASDAQ:AMD) generated a record $6.8 billion in revenue, up 18% from last year, driven by higher data center and client processor sales. It also expanded its gross margin by 2.5 percentage points and increased its EPS by 31% year-over-year.

AMD boasts major clients for its MI 300X accelerators, such as Microsoft and Meta. It is set to benefit ahead as more companies ramp up the development of data centers for AI. While DeepSeek sparked a massive AI stock selloff on January 27, AMD’s share price fell by only 6.4%, compared to double-digit losses by its peers. This has led to chatter about Advanced Micro Devices, Inc. (NASDAQ:AMD) being the biggest winner from the bloodbath.

Wall Street analysts see great potential in AMD and expect it to benefit from increased demand for its AI accelerators, which offer competitive pricing compared to its rivals. It is one of the best large-cap stocks to invest in according to analysts, with a consensus Buy rating and an average share price upside potential of 51.52%.