12 Reddit Stocks with High Potential

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

Number of Hedge Fund Holders: 96

Average Upside Potential as of April 15: 48.15%

Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments: Data Center, Client, Gaming, and Embedded. It offers products like AI accelerators, x86 microprocessors, and GPUs. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers, among other customers.

On April 8, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while lowering its price target to $110 from $135. The buy rating comes from AMD’s potential for growth despite negativity in the computing sector. Analysts believe that AMD’s upcoming launch of the MI355X mid-year will likely drive growth in its data center GPU segment. Although tariffs are a concern as well, the company is focused on capturing value in the AI sector.

AMD recorded a revenue of $7.7 billion in Q4 2024, which was 24% improvement year-over-year. This was driven by the company’s Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors. On March 31, Advanced Micro Devices Inc. (NASDAQ:AMD) also completed its acquisition of ZT Systems, which provides AI and compute infrastructure to major hyperscale providers. This acquisition is expected to accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.