10 AI Stocks Investors Are Watching Today

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

Number of Hedge Fund Holders: 96

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for data centers, gaming, AI, and embedded applications. On May 20, Citi analyst Christopher Danely reiterated a “Neutral” rating on the stock with a $100.00 price target. The reiteration follows AMD’s announcement yesterday that it will divest the ZT Systems manufacturing business to Sanmina for $3 billion, following its $4.6 billion acquisition of ZT back in August.

The analyst told investors in a research note how AMD had already announced at the time of acquisition that it would acquire ZT but sell off the manufacturing piece, retaining engineers to better compete with Nvidia. Citi had expected this acquisition to be around $5 billion. As such, the ZT Systems acquisition should allow the company to better compete with Nvidia in the data center GPU market through additional system experience and faster hyperscaler deployment times. As of now, the firm’s assessment remains unchanged as it watches the company’s next steps in the developing tech landscape.