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Advanced Micro Devices’ (AMD) Competitive Position Versus Nvidia Underpins Raymond James’ Confidence

Advanced Micro Devices Inc. (NASDAQ:AMD) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. With a value of approximately $495 million, the company accounts for about 3% of Cathie Wood-led ARK Investment Management’s 13F portfolio as of the end of September. During the third quarter, ARK increased its AMD position by roughly 13%, rising from 2.71 million to 3.06 million shares.

On November 20, Simon Leopold, an analyst from Raymond James, resumed coverage of Advanced Micro Devices Inc. (NASDAQ:AMD) with an Outperform rating and a price target of $377. This update was part of the analyst’s resumption of coverage of seven leading semiconductor companies, including Nvidia, Marvell, Broadcom, ARM, Astera Labs, and Intel.

Leopold appeared quite upbeat about these companies, believing that generative artificial intelligence has “transformed a typically cyclical market sector of semiconductors into a secular boom.” Moreover, he believes that semiconductors are proving to be the concrete base for “an unprecedented structural shift in the technology landscape.”

The analyst also considers Advanced Micro Devices Inc. (NASDAQ:AMD) “best positioned to compete with NVIDIA” in merchant GPUs. On his investment thesis, Leopold further elaborated:

“Investor skepticism lingers, but shares have attracted a broader audience than in the past and have delivered outstanding performance YTD… Fundamentals need to catch up, and we believe they will. The newest wins with OpenAI and HUMAIN for ~1 GW could be worth $15B in 2026. These grow to over 2 GW in 2027. AMD appears poised for continued server and PC share gains, too. Additionally, the OpenAI deployment may serve as an important endorsement for potentially encouraging other model builders and hyperscalers to adopt AMD GPUs. The AI TAM is large enough to support multiple chip suppliers, and AMD will be among the participants.”

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 10 Hottest Smid-Cap Stocks So Far In 2025.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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