Jim Cramer’s 5 S&P 500 Stock Picks for 2023

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

Upside Potential: 24.79%
Gain since Cramer Prediction: 77%
Price to earnings multiple: 38

Advanced Micro Devices, Inc. (NASDAQ:AMD) is another stock that has lived up to Cramer’s prediction going by the 77% gain year to date. Wary of the company’s slowing personal computer, Cramer reiterated his confidence on CEO Lisa Su and the business model. The company has seen its fortunes improve significantly owing to the growing demand for chips to enable the AI revolution.

While Nvidia has had a head start on the segment, the market size means there is tremendous value to unlock. Microsoft has already partnered with the chip giant to enhance AI chip expansion. Advanced Micro Devices, Inc. (NASDAQ:AMD) has also launched its most powerful GPU to date to rival Nvidia.

While Advanced Micro Devices, Inc. (NASDAQ:AMD) is up by about 77% year to date, it trades with a price-to-earnings multiple of 38. It also commands an average price target of $137.38, implying a 24.79% upside potential.