20 Best Artificial Intelligence (AI) Stocks to Buy According to Analysts

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

Number of Hedge Fund Holders: 107

Average Upside Potential: 54.0%

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a critical player in the AI ecosystem, using its expertise in designing cutting-edge processors, GPUs, and associated technologies to power AI workloads. In a significant development, the company announced the acquisition of ZT Systems, which can help enhance its capabilities in offering AI infrastructure solutions to hyperscale customers. The acquisition is expected to strengthen Advanced Micro Devices, Inc. (NASDAQ:AMD)’s position in the dynamic AI market and potentially result in increased market share and revenue growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to make progress in the AI and data center markets, placing itself as a strong competitor to well-established players. Its MI300 product line, which consists of high-performance GPU accelerators for AI workloads, was successful. The company, in Q3 2024, demonstrated optimism about its Instinct MI300X AI accelerators (that compete with Nvidia’s venerable H100). It revealed that the part can fuel $5 billion in revenues during Advanced Micro Devices, Inc. (NASDAQ:AMD)’s 2024 fiscal year.

The AI chip market aims to see exponential growth over the next few years, courtesy of elevated demand for AI applications throughout sectors, such as cloud computing, autonomous vehicles, and edge devices. By significant investments in AI-specific products, like the MI300 series, and acquiring companies such as ZT Systems, Advanced Micro Devices, Inc. (NASDAQ:AMD) has been developing a comprehensive AI ecosystem. Cantor Fitzgerald gave an “Overweight” rating and issued a $180.00 price target on shares of the company on 30th October.

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