Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the AI stocks analysts are betting on. Advanced Micro Devices, Inc. (NASDAQ:AMD), Cisco, and HUMAIN—a PIF-backed AI firm, unveiled plans on November 19 to create a joint venture aimed at turning Saudi Arabia into a major global player in artificial intelligence. Set to launch in 2026, the effort brings together HUMAIN’s next-generation data centers with AMD’s high-performance chips and Cisco’s infrastructure expertise.
The partnership’s first phase includes a 100 MW AI buildout powered by AMD’s Instinct MI450 GPUs and Cisco’s critical networking and data-center systems. The long-term target is far more ambitious: delivering up to 1 GW of AI infrastructure across the kingdom by 2030.
This joint venture builds on earlier collaborations among the three companies and is designed to offer scalable, cost-efficient AI capacity to support both government and private-sector needs. Beyond the technology, the initiative aims to strengthen Saudi Arabia’s digital economy by developing local talent, localizing key technologies, and accelerating homegrown innovation.
Earlier on November 10, Bernstein analyst Stacy Rasgon reiterated a Hold rating on the stock and set a $200 price target. The sentiment comes as Advanced Micro Devices Inc. has reiterated it is on track to achieve $100 billion in revenue over the next five years, attributed to strong demand for data center chips.
The company has already signed a multiyear deal with OpenAI, expected to bring in billions of dollars in annual revenue amid the AI boom. The agreement is a vote of confidence in AMD’s AI chips that continues to bolster the company’s sentiments and prospects in the highly competitive industry. Chief Executive Officer Lisa Su has already reiterated that the company’s market for data centers could grow to $1 trillion.
Su expects the artificial intelligence wave to drive much of the growth as the company works on plain processor and networking chips. It’s also investing in specialized AI chips to capitalize on the massive market opportunity. Consequently, AMD expects 35% annual growth across its entire business and 60% growth across its data center businesses. It also expects earnings per share to reach $20 per share over the next three to five years.
“It’s a exciting market,” Su said. “There’s no question, data center is the largest growth opportunity out there, and one that AMD is very, very well positioned for.”
Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures high-performance computing and graphics solutions, including processors and GPUs, for a wide range of markets, such as data centers, personal computers, and gaming. The company’s products include microprocessors, graphics cards, and chipsets for PCs, servers, and embedded systems.
While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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