20 Trending AI Stocks on Latest News and Ratings

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

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) is an American multinational corporation operating as a semiconductor company worldwide. The company is trying to establish itself as a key player in AI-powered personal computers (AIPCs), driving innovation in hardware to support advanced, next-generation applications. By integrating technology across CPUs, GPUs, and NPUs, it strives to create a strong ecosystem that supports the development of powerful AI applications.

AMD held its Advancing AI 2024 event on October 10, 2024. At its AI event in San Francisco, AMD revealed its latest AI data center processors and new PC and server chips. In particular, the MI325X chip, built on the same architecture as the MI300X, incorporates a new memory variant designed to accelerate AI-related tasks. Vendors like Super Micro Computer (NASDAQ: SMCI) are expected to begin shipping AMD’s new AI chip to customers in Q1 2025. AMD aims to use the chip to compete with Nvidia’s Blackwell AI chips. AMD also plans to launch its next-gen MI2350 chips that will be more powerful than the MI325 series chips.

Regardless, the stock’s share ended the day down by 4% following the AI event. As per Bernstein Research analysts, its GPU faces a “Zero challenge” against Nvidia’s upcoming Blackwell chip.

“Even the company’s MI350X tease shows raw performance that, while on par with Blackwell on paper, arrives a year later, just in time to compete against Nvidia’s next offerings. Hence we do not see even AMD’s accelerated road map closing the competitive gap.”

– Bernstein Research analysts.

Vivek Arya, research analyst at Bank of America Securities, further notes how there is “no near-term catalyst to change the dynamic” between the company and its chip rivals.

“Training performance seems 1 year behind Blackwell (on par with H200) while inferencing is only slightly better”.

-Vivek Arya

On the other hand, Jefferies and Bank of America both maintained Buy ratings for the stock as of Friday (October 11), with price targets of $190 and $180, respectively, while 13 of 17 analysts tracked by Visible Alpha also rated it a “buy,” with a consensus target of $192.13.

In other news, the US is weighing on capping exports of AI chips from both Nvidia and AMD on a country-specific basis. This move is going to limit some countries’ artificial intelligence capabilities. Officials are particularly focused on Persian Gulf countries, and discussions are still in the early and fluid stages, but interest in the policy has increased recently. Last month, Commerce Department officials introduced these regulations, with more rules expected in the future.