20 Best Data Center Stocks to Buy According to Billionaires

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

Number of Billionaire Investors: 18

Billionaire Holdings: $5.1 billion

Number of Hedge Fund Holders: 96

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems. Over the years, AMD has gained notable market share in both the CPU and GPU markets, competing directly with Intel Corp. (NASDAQ:INTC) and NVIDIA Corp. (NASDAQ:NVDA).

However, investor sentiment around Advanced Micro Devices Inc. (NASDAQ:AMD) has been mixed, as the company’s AI sector growth has trailed behind expectations. Adoption of its advanced GPU products has been slower compared to competitors, leading to the perception that AMD is lagging behind NVIDIA despite its strong CPU market share gains. As a result, the stock has underperformed relative to other semiconductor peers.

Reflecting this cautious sentiment, JP Morgan analyst Harlan Sur reiterated a Neutral rating on Advanced Micro Devices Inc. (NASDAQ:AMD) with a $130 price target, in his March 12 report. However, he remained bullish on the company’s growth potential in 2025. Following discussions with company CEO Lisa Su, he highlighted AMD’s strong and diversified presence across data centers, enterprise, and client computing, which he believes could drive double-digit revenue growth exceeding 20%. AMD continues to expand its server CPU market share, particularly among cloud providers and hyperscalers, while improving server demand trends further bolster its outlook. Additionally, Sur expects desktop, notebook, gaming, and embedded markets to grow, with AI GPU revenues projected to rise over 60%, reinforcing AMD’s position in next-generation AI computing.

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