15 Most Promising Technology Stocks to Buy Now

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

Number of Hedge Funds: 107

Potential Upside: 24%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures high-performance computing and graphics solutions. Its product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions for various applications, including data centers, gaming, and embedded systems. It has gained significant market share in the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).

Advanced Micro Devices, Inc. (NASDAQ:AMD)’s innovative architecture and focus on energy efficiency have established it as a key player in the rapidly evolving semiconductor industry. It is well-positioned to capitalize on the growing demand for high-performance computing, driven by trends such as artificial intelligence, machine learning, and cloud computing. That being said, there were news reports recently of Arm Holdings Plc. (NASDAQ:ARM)’s plan of launching its own chips this year after securing Meta Platforms (NASDAQ:META) as one of its first customers. If these reports hold water, competition will intensify further for both Advanced Micro Devices Inc. (NASDAQ:AMD) and Intel Corp. (NASDAQ:INTC).

In the first week of January, Northland Capital Markets analyst Gus Richard named Advanced Micro Devices Inc. (NASDAQ:AMD)  among his Top Picks for 2025. He estimates the company’s AI revenue to reach $9.5 billion in 2025, up from $5.2 billion, with revenue in the first half of 2025 expected to rise 7% compared to the second half of 2024. He provides a positive rationale, stating:

“We expect AMD to continue to gain share in AI GPUs, server CPUs, and PC clients as headwinds from the embedded and gaming segments abate. AMD is winning share in AI based on its roadmap and TCO. AMD has better products for server and client CPUs. The PC refresh cycle will likely be much stronger than currently expected. We think there is significantly more upside to CY 2025 than risks.”

In a February 5 update, a Stifel analyst maintained his Buy rating on Advanced Micro Devices Inc. (NASDAQ:AMD) but lowered his target price to $162 from $200 earlier, still indicating 43% upside.