Advanced Micro Devices, Inc. (NASDAQ:AMD) ranks among billionaire David Tepper’s 10 favorite stocks. On February 4, Benchmark reaffirmed its Buy rating and $325 price target for Advanced Micro Devices, Inc. (NASDAQ:AMD), citing the company’s growing prominence in the AI industry. Analyst Cody Acree was optimistic about AMD’s “strong record results” and “attractive outlook,” citing the company’s “rapidly growing leverage to the aggressively expanding AI Data Center market” spanning both CPU and GPU segments.
The firm noted that Advanced Micro Devices, Inc. (NASDAQ:AMD) hopes to generate “tens of billions of annual AI revenue in 2027,” adding that the OpenAI partnership alone may provide “well over $100 billion of revenue potential over the next few years.”
Benchmark stressed that clients are “eager for a viable alternative to Nvidia’s dominant, but proprietary and closed architecture,” especially considering what the firm characterized as “the incumbent’s ongoing challenges to fully satisfy the market’s ever increasing demand.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and builds high-performance computing, graphics, and AI technologies used across data centers, PCs, and emerging AI workloads.
While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
