We recently compiled a list of the 15 AI News and Ratings Grabbing Investor Attention. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other AI stocks you should pay attention to.
AI initiatives by businesses across the world are attracting the attention of investors. For example, the latest developments come from Finland, where Nokia, a once powerful phone maker who has now shifted focus towards telecom equipment, recently announced that it had purchased an application programming interface (API) hub and marketplace from US company Rapid. The hub is the largest of its kind in the world and is part of a larger effort by the Finnish company to boost revenues from 5G deployments. 5G tech has been a key reason for AI growth in the past few years. 5G speeds allow faster processing of AI tasks on mobile devices.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
Across the pond, AI startup CoreWeave has secured more than $650 million in funding led by top names like Jane Street, Magnetar, Fidelity Management and Macquarie Capital. The startup specializes in providing cloud-based graphics processing unit (GPU) infrastructure to artificial intelligence developers. The company is now valued at more than $23 billion. In May this year, the firm was valued at $19 billion after a funding round led by investment firm Coatue that managed to raise over $1 billion. According to venture capital firm Accel, funding of AI and cloud companies in the US, Europe and Israel is estimated to hit $79.2 billion by the end of the year.
READ ALSO: 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into?
The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Advanced Micro Devices, Inc. (NASDAQ:AMD)
Market Capitalization: $240 Billion
Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The stock has been one of the many chip stocks impacted by comments made by US House Speaker Mike Johnson that the Republican administration, set to take charge of the US government in the coming weeks, may try to repeal the CHIPS Act. Johnson made the comments while answering a question by a reporter. However, he later clarified that the new administration only sought to further streamline the bill.
Overall, AMD ranks 8th on our list of the AI news and ratings grabbing investor attention. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.
Disclosure: None. This article is originally published at Insider Monkey.
