We recently published a list of the 13 NASDAQ Stocks with the Highest Upside Potential. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against other NASDAQ stocks with high upside potential.
On April 7, Dan Ives of Wedbush Securities joined CNBC’s ‘Squawk on the Street’ to discuss how the current tariff environment could impact tech supply chains. Musk’s actions and Trump’s tariffs have contributed to broad economic uncertainty, which Ives also referred to as the economic Armageddon for US tech in an earlier conversation. He expressed concern about the structural supply chain challenges posed by recent tariffs and geopolitical tensions. Ives highlighted that the US tech sector has historically maintained an edge over China but this could be wiped out if manufacturing were relocated to the US. The logistical hurdles of building manufacturing plants in the US are not negligible and it would take 4 to 5 years to establish facilities capable of sustaining production levels comparable to those in Asia.
He also acknowledged that he hasn’t downgraded major stocks like the ones in MAG7 but remains cautious. If these previously highlighted issues persist for months, Ives anticipates drastic cuts in earnings. This uncertainty surrounding tariffs could lead to lower demand for emerging technologies like AI and cybersecurity. He explained that this situation could severely impact the US tech companies and lead to broader cuts across the tech sector — potentially up to 25% in earnings. He also criticized Elon Musk’s political involvement, which he believes has caused permanent damage to his brand and customer base. He estimated a 20% demand destruction in Europe and 10% in the US.
Our Methodology
We used the Finviz stock screener to select the 13 stocks with the highest analysts’ upside potential (at least 35%) as of April 8. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database.
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 373.4% since May 2014, beating its benchmark by 218 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)
Average Upside Potential as of April 8: 67.38%
Number of Hedge Fund Holders: 96
Advanced Micro Devices Inc. (NASDAQ:AMD) offers products like AI accelerators, x86 microprocessors, and GPUs through its Data Center, Client, Gaming, and Embedded segments. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force and sales representatives.
Jefferies lowered the company’s price target from $135 to $120 on March 27 as analyst Blayne Curtis noted that the company’s AI growth remains weaker than anticipated. Therefore, the firm also downgraded the company’s rating from Buy to Hold although it has gained market share in PCs and servers. This raises doubts regarding the company’s projected AI revenue for 2026 and 2027.
As for 2025, Advanced Micro Devices Inc. (NASDAQ:AMD) entered the year with a string pipeline. For instance, its Ryzen AI processors are optimized for Microsoft’s Copilot AI assistant and could boost growth in the client segment of the company. In Q4 2024, the company reported a record revenue of $7.7 billion which came after a 24% year-over-year improvement. This was majorly driven by the Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors.
Overall, AMD ranks 3rd on our list of NASDAQ stocks with the highest upside potential. While we acknowledge the growth potential of AMD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
