10 AI Stocks Making Moves on Wall Street

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 Making Moves on Wall Street. On October 20, Bernstein SocGen Group reiterated its Market Perform rating on the stock with a $200 price target. The rating affirmation follows AMD’s strategic move with OpenAI, where it will supply billions of dollars’ worth of GPUs to the ChatGPT owner.

The firm has acknowledged how AMD’s move to give up 10% equity “for the privilege of selling to Sam Altman” was unexpected, but the decision seems understandable as AMD has to be “on the OpenAI rocket ship or get left in the dust.”

Bernstein is also a little cautious about how smooth AMD’s ramp-up will be and whether the market might be “overly-optimistic” about the pace into 2027. However, it believes that the near-term outlook appears solid.

“Has AMD found their grail? Investors certainly seem to think so. And while we did not have the company giving up 10% of their equity for the privilege of selling to Sam Altman on our bingo card, we understand it (AMD has to be on the OpenAI rocket ship or get left in the dust, and so Lisa Su bought her ticket). It clearly remains to be seen how smoothly the ramp will go, whether other customers come in on size (and whether some recent announcements are even incremental), and we worry somewhat that the Street may be getting overly-optimistic as to the pace into 2027. But for now the set-up into the print as a result admittedly looks solid; core markets (PCs, servers) are looking better in the near term, they continue to take oodles of share, and as the OpenAI ramp doesn’t even start for a year a tremendous amount of pressure has probably been removed from any nearer-term AI expectations (i.e. what if they were to miss AI for Q4? Who would care?) with the forthcoming analyst day providing another chance to build up the audience. We remain on the sidelines, but believe this one could work for now. MP; $200 PT.”

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