9 Buzzing AI Stocks on Latest News and Ratings

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

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On February 10, Wells Fargo analyst Aaron Rakers reiterated a “Buy” rating on the stock with an associated price target of $140.00. Of the many factors pinpointing AMD’s strategic positioning and growth prospects, Rakers has highlighted AMD’s focus on expanding its data center GPU offerings, especially with the upcoming rise of the CDNA 4-based MI350X into mid-2025. This ramp is expected to enhance AI training capabilities significantly and also act as part of a broader portfolio strategy that will help AMD grab a meaningful share in the data center market over time. Another key growth driver for AMD is its momentum in the server CPU market, led by strong enterprise demand and recovery in the cloud sector. Additionally, AMD has the potential to grow its market share, especially in hyperscale cloud applications. Rakers also views an attractive risk-reward profile for AMD due to its strong positioning and strategic initiatives in the data center and server markets.