10 AI Stocks Analysts Are Watching 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 Watching Closely. On October 15, HSBC analyst Frank Lee raised his price target on the stock to $310 from $185 and reaffirmed his Buy rating. The firm believes that AMD’s OpenAI deal is poised to bring massive AI revenue upside potential.

“OpenAI deal implies massive AI revenue upside potential, which is still under-estimated by consensus. We believe this deal gives enhanced visibility into AMD’s AI GPU revenue opportunity till 2030.”

The companies agreed last week that OpenAI will deploy six gigawatts of AMD GPUs over the course of several years. The deployment of the first 1 gigawatt AMD Instinct MI450 GPUs will begin in the second half of 2026.

“Since the deployment is set to begin with the MI450 series, we used the power consumption of MI450 as the base. We believe that the total revenue opportunity for AMD from this OpenAI deal is around USD80bn – more than 10x its 2025e AI GPU revenue of USD7.3bn.”

The analysts lifted their 2026 estimates for AI GPU revenue to $19.8B from $13.9B. This reflects expectations of a 0.5GW deployment for OpenAI in the second half of 2026.

“We believe AMD has also increased its CoWoS allocation to 70k-80k wafers for 2026e. With constant capacity expansion and increased visibility, we believe AMD should be able to continue expanding its CoWoS allocation into 2027e as well.”

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