12 Most Promising AI Stocks According to Wall Street Analysts

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

Average Upside Potential: ~49.6%

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a leading player in the broader AI industry as a result of its focus on offering cutting-edge hardware solutions suited for AI workloads. The company continues to benefit from the growing demand for GPUs. The company’s data center revenue, which is mainly aided by AI accelerators, shot up 122% YoY in Q3 2024. Advanced Micro Devices, Inc. (NASDAQ:AMD)’s revenue growth is poised to accelerate in 2025, courtesy of its AI chip technology advancement. Also, customers expanding their use of the company’s products in their data centers will add to this revenue growth.

Citi maintained a “Buy” rating on the company’s shares and anticipates healthy demand in data centers, AI, and communication segments. The firm expressed optimism about Advanced Micro Devices, Inc. (NASDAQ:AMD), which stems from the potential upside from AI sales. The company’s potential in the AI accelerator market is significant, thanks to the strong growth of AI applications throughout industries. AMD CEO Lisa Su expects the AI accelerator market to reach $500 billion by 2028, driven by advancements in agentic chatbots, AVs (autonomous vehicles), and smart manufacturing systems.

Even if Advanced Micro Devices, Inc. (NASDAQ:AMD) captures a mid-single-digit share of this dynamic market, it can see billions of dollars in revenue. The company’s emphasis on high-volume AI workloads and its capability to provide competitive performance at attractive price points can help gain traction across a wide spectrum of customers, from cloud service providers to enterprise data centers.