10 AI Stocks Surging on News and Ratings

7. 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 13, Yik Ban Chong from Phillip Securities maintained a “Buy” rating on the stock with a price target of $120.00. Yik Ban Chong’s buy rating is a reflection of AMD’s strong potential and resilience despite the challenges that it is facing. The company’s robust sales of MI300X chips, EPYC server CPUs, and Ryzen CPUs have led to revenue and profit figures in line with expectations for the first quarter of 2025. Its client PC segment has also demonstrated remarkable growth, maintaining over 50% year-over-year revenue growth for four consecutive quarters.

This growth can largely be attributed to record average selling prices for client CPUs and market share gains in AI PC chips. The company’s second quarter guidance for 2025 also remains strong despite potential revenue impacts from recent U.S. export controls on AI chips to China. Moreover, with major tech companies ramping up their capital expenditure to expand data centers, AMD’s EPYC CPUs and MI325X GPUs are expected to see a boost in demand. Together with AMD’s stabilizing gaming and embedded businesses, all these factors contribute toward a positive outlook for the stock.