12 Most Promising Growth Stocks According to Wall Street Analysts

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

Analyst Upside as of January 23, 2025: 49%

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor and IT company that produces accelerators capable of managing complex AI workloads. Over the past few months, AMD launched advanced processors for the next generation of PCs and high-performing computing solutions for the AI computing demand. For instance, on January 6, AMD announced the launch of its first commercial Dell PCs that run on its AI processors. The new processors offer improved efficiency, privacy, personalization, and connectivity coupled with cutting-edge AI compute and advanced business productivity tools.

On January 22, Thomas O’Malley, an analyst at Barclays shared his stance on AMD. The analyst highlighted that the stock has been struggling for the past year. However, O’Malley believes that AMD’s investments in AI will allow the company to achieve year-over-year growth of a few billion dollars for MI series accelerators in 2025. He also added that the company will have to wait a little longer to garner opportunities for additional market share. Despite that, the analyst gives an overweight rating on the stock with a price target of $140, adding that the stock may potentially gain 12% in the coming months.

AMD attributes its growth to its data center products and ever-growing demand for its Ryzen PC processors. The company is emerging in the AI and technology sector as a leader in the production of accelerators and processors.