12 Best Virtual Reality Stocks to Buy According to Analysts

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

Analyst Upside: 41.63%

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, visualization technologies, and graphics. Its operations are divided into various segments including Data Center, Client, Gaming, and Embedded. The company provides LiquidVR technology that enables realistic and advanced VR experiences through powerful processors and graphics.

The company delivers high computing performance and chips powering immersive experiences in various VR and AR devices. It powers Sony’s PlayStation 5 and Microsoft’s Series X|S game consoles. In 2016, Advanced Micro Devices, Inc. (NASDAQ:AMD) introduced Radeon Pro Duo with its LiquidVR SDK, the world’s most powerful platform for VR designed for a variety of VR applications, ranging from entertainment to education, journalism, medicine, and cinema.

The company reported a 24% year-over-year revenue growth in fiscal Q4 2024 to a record $7.7 billion. This growth was attributed to a 69% growth in data centers and a 58% growth in client segments. 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.

Alger Spectra Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its Q2 2024 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) is a major global supplier of PC microprocessors and graphics processors to computing original equipment manufacturers (OEMs). The company’s product range spans desktops, notebooks, servers, graphics, and embedded/semi-custom chips. AMD operates in a large addressable market, covering areas such as PCs, servers, high-end gaming, and deep learning. Additionally, AMD has introduced competitive AI technologies, including powerful accelerators poised to capture a share in a market worth several hundred billion dollars. During the quarter, the company reported fiscal first-quarter operating results that met analyst estimates, with strengths in data center GPUs and server CPUs offsetting weaknesses in their gaming and embedded businesses. Moreover, management raised their fiscal second-quarter revenue guidance, albeit slightly below consensus estimates, where they expected double digit growth in data center revenues, while projecting a decline in their gaming segment, driven by weaknesses in both desktop GPUs and Semi-Custom Systems-on-a-Chip (SoC). While weaker-than-expected near-term results weighed on shares during the quarter, we believe the company is positioning itself to potentially benefit from long-term growth in AI infrastructure spending. Specifically, the company continues to gain server CPU market share, which could potentially accelerate as traditional compute deployments begin to recover.”