10 AI Stocks Analysts are Tracking Closely

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

Number of Hedge Fund Holders: 113

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the 10 AI Stocks Analysts are Tracking Closely. On October 28, UBS reiterated its “Buy” rating on the stock with a $265.00 price target. The rating affirmation comes ahead of the company’s third-quarter results.

The firm is bullish on the stock, driven by sustained GPU ramp, renewed server upgrades, and strong AI spillover effects. According to UBS, AMD’s Q3 performance is likely to approach the high end of the company’s $9 billion revenue guidance, driven by strength in both server and client CPU segments.

It forecasts data center GPU revenue to reach an estimated $1.7 billion for the quarter. For the fourth quarter, it maintains its estimate of approximately $9.3 billion in revenue, noting the likelihood of potentially guiding as high as $9.5 billion. This is supported by renewed server upgrade activity and AI-related spillover into traditional compute infrastructure.

“For FQ4, we remain comfortable with our ~$9.3B estimate (+$200MM higher than Street) but could see how AMD could guide as high as $9.5B – again driven by renewed server upgrade activity and some spillover from AI into traditional compute infrastructure as the industry embarks on new strategies to prepare for more AI processing in the data processing market. AMD’s client business should also be flat to up, better than normal seasonal. We model FQ4 data center GPU revenue of ~$2.4B – a ~$700MM step up from FQ3 owing to the ramp of MI355x (META, OCI, etc.). To the extent that AMD comments on FQ1:26 (March), it is typically down slightly due to normal seasonality and the same will likely be the case this year – especially given our checks on MI355x, which generally suggest that many customers seem to be waiting for MI455 racks next year. Having said this, we do expect AMD to voice a very bullish multi-year outlook for its data center GPU business.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications.