We recently published a list of 10 AI News Investors Probably Missed. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other AI news investors probably missed.
The world of AI is shifting fast, and DeepSeek is at the center of the latest shake-up. A small Chinese company with just 200 employees has built an AI model that rivals tech giants at a fraction of the cost. This breakthrough raises big questions about the future of AI: Will open-source models challenge the dominance of closed systems? Will companies still need massive data centers, or is AI becoming more efficient? And how will major tech firms respond? While the answers aren’t clear yet, one thing is, that AI is evolving, and the race is far from over.
DeepSeek Breakthrough and the Future of AI Development
Chief Investment Strategist and Portfolio Manager at Hightower, Stephanie Link joined CNBC Squawk Box to discuss the market downturn, especially in tech and energy, and the impact of DeepSeek on AI competition. She acknowledged concerns about the AI semiconductor sector but emphasized that the market is large enough for multiple players. While she questioned whether DeepSeek’s technology is truly superior, she suggested investors look for opportunities in companies like Amazon and Broadcom.
Andrew Ross Sorkin of CNBC raised points about the potential shift toward open-source AI, questioning whether this could commoditize AI technology and reduce the need for massive data centers. Link responded that while open-source models like DeepSeek may become widespread, there are still unresolved questions regarding security and long-term adoption by large companies. Despite this, she believes hyperscalers will continue to invest in AI, with billions earmarked for the sector. While Link sees the AI market continuing to grow, she emphasized the need for careful stock selection rather than jumping in immediately.
For this article, we selected AI stocks by reviewing news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 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)
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 January 29, Susquehanna reduced its price target for AMD to $165 from $200, maintaining a Positive rating on the stock. The firm expects generally in-line quarterly results, with potential upside from Server and PC segments. However, it highlighted the likely removal of the full-year MI300 guidance, which could be a slight negative for AMD AI supporters.
Overall, AMD ranks 2nd on our list of AI news investors probably missed. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. 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.
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Disclosure: None. This article is originally published at Insider Monkey.