12 High Flying AI Stocks This Week

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

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On February 5^th, analyst Amanda Tan from DBS maintained a “Buy” rating on the stock and a $200.00 price target following the company’s earnings report on the previous day. While the company reported quarterly results and revenue outlook above analyst estimates, it missed AI chip-related revenue with investors scrutinizing its results against Nvidia. Fourth-quarter data center revenue, a proxy for AMD’s AI revenue, was $3.9 billion, compared to the consensus estimate of $4.15 billion. Regardless, Tan’s rating signifies AMD’s potential for growth and market leadership.

In particular, its expanding market share in the data center accelerator space is expected to reach an addressable market of USD 400 billion driven by AI demand. The company’s roadmap, including the release of the MI325X accelerator in 2024 and subsequent series in the coming years, will help it stay competitive. AMD’s strategic positioning in the AI market is a multi-billion dollar opportunity. Moreover, its data center segment is anticipated to grow at a compounded annual growth rate of 47% from FY23 to FY27 on the back of rising demand for data center GPUs. Finally, market share gains, synergies from acquisitions like Xilinx, and a clear execution roadmap, further help AMD focus on revenue growth and margin expansion. Overall, the firm is bullish on AMD despite PC market challenges and competition from tech firms such as Nvidia and Intel.