10 AI Stocks Investors Are Watching

5. 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 Investors Are Watching. On November 12, Melius Research raised its price target on the stock to $380 from $300 while maintaining a Buy rating. The firm maintains a positive outlook on the stock as it sees AMD on a realistic path to capture 10% of the AI market share and solid visibility into multi-year earnings growth.

Melius stated how the margin guide for AMD has been the “real positive surprise” in its recent financial outlook. Meanwhile, its 5%+ revenue growth CAGR “backs a double-digit share in AI semis/networking” alongside a “$150B or so in revenue by 2030.”

According to the firm, AMD is striving for a significant share of the $1T market cap with these growth aspirations. While it may need OpenAI funding and “a lot of” execution to achieve the goal, a 10% market share seems more realistic, the analysts note.

“AMD seems to clearly be targeting a $1T market cap with these aspirations. Although there is a lot of execution and OpenAI funding needed to get there, a share of 10%+ seems realistic. We are raising our 2027–2028 estimates and target to $380 from $300. Reiterate Buy.”

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