10 AI Stocks on the Market’s Radar

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 on the Market’s Radar. On October 7, Piper Sandler analyst Harsh Kumar raised the firm’s price target on the stock to $240 from $190 and kept an Overweight rating on the shares.

The price target raise follows the landmark deal between AMD and OpenAI, signifiying a 6-gigawatt agreement to power OpenAI’s AI infrastructure with AMD’s Instinct GPUs.

OpenAI will be receiving 160M warrants for the stock in exchange as specific milestones are achieved over the next five years. The firm anticipates AMD to begin shipment of Pensando’s UALink switches along with the MI500 chip in 2027.

“The initial agreement covers a broad range of content including GPUs, CPUs, DPUs and some licensing revenue from the Helios rack. AMD expects each GW deployed to drive high double-digit billions of annual revenue. We expect AMD to also start shipping Pensando’s UALink switches along with the MI500 chip in 2027. This agreement signals the potential for broad adoption of AMD’s Instinct accelerators across both OpenAI and its designated CSP partners. We believe this will likely lead to significant traction with other players down the line as well. We reiterate our OW rating and increase our PT to $240.”

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