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Advanced Micro Devices, Inc. (AMD): Goldman Sachs Is Bullish On This AI Stock

We recently compiled a list of the 10 Buzzing AI Stocks According to Goldman Sachs. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other buzzing AI stocks.

The Goldman Sachs Communacopia + Technology Conference 2024, held earlier this month, brought several significant updates on the technology sector for investors, particularly focusing on innovation and financial growth across growth industries. Key discussions revolved around energy-efficient computing, artificial intelligence (AI), and advanced semiconductor technologies, signaling critical transformations in tech and telecommunications. At the conference, companies working in the tech universe outlined their strategic outlooks, emphasizing the role of energy-efficient computing in driving semiconductor growth, with industries like AI, IoT, robotics, and autonomous vehicles fueling multi-trillion-dollar shifts.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

One of the highlights of the conference was the appearance of NVIDIA CEO Jensen Huang, who appeared alongside Goldman Sachs CEO David Solomon to discuss the AI industry in great detail. Quizzed about the recent US export controls on chips to China and the rise in geopolitical tensions potentially harming supplies, Huang outlined that his company was confident that if Taiwan Semiconductor Manufacturing Company, the Taiwan-based leading supplier of advanced AI chips to NVIDIA, was compromised, the chip supply would continue, even though it would not be as good. Huang stressed that NVIDIA possessed enough intellectual property to transfer chip production from one plant to another, if need be.

NVIDIA has lost more than 15% of market capitalization since it issued third quarter guidance numbers that raised worries about slowing earnings growth. In particular, there were concerns about the concentration of hyperscalers in the NVIDIA business model, with four large customers representing nearly half of the revenue of the firm in relation to the AI boom. Following the appearance of Huang at the conference, Goldman Sachs semiconductor analyst Toshiya Hari reiterated a Buy rating on the stock, backing the company to pick up sales in the coming months as demand for accelerated computing continued to be really strong and broadened into enterprise and sovereign states.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.

Our Methodology

For this article, we selected AI stocks by combing through the proceedings of the Goldman Sachs 2024 Communacopia and Technology Conference. These stocks are also popular among hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 108

Advanced Micro Devices, Inc. (NASDAQ:AMD) operates as a semiconductor manufacturer. The CEO of the firm, Lisa Su, spoke at the Goldman Sachs 2024 Communacopia and Technology Conference earlier this month, stressing that the market was at the start of a multiyear AI PC cycle. According to the CEO, AI was the most significant innovation that had come to the PC market in the last 10-plus years. She noted that AI tech in PCs could be used as productivity tools, giving the example of the work AMD did with the AI PCs of tech giant Microsoft in this regard. Looking ahead, she predicted that AI PCs would be a driver of the commercial refresh cycle for the company next year.

Lisa Su also commented on the recent Advanced Micro Devices, Inc. (NASDAQ:AMD) purchase of ZT Systems, noting that combining the high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios of AMD with the industry-leading data center systems expertise of ZT Systems would enable AMD to deliver end-to-end data center AI infrastructure at scale within the ecosystem of OEM and ODM partners.

Overall AMD ranks 6th among the buzzing AI stocks to buy according to Goldman Sachs. While we acknowledge the 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 timeframe. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

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:

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