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AMD (AMD): AI Growth Strategy, Server Shipments Surge, and Analyst Ratings

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the must-buy AI stocks to invest in. On December 22, Rosenblatt Securities’ Kevin Cassidy stated that Micron Technology’s upbeat outlook during their earnings call aligned perfectly with Advanced Micro Devices, Inc.’s (NASDAQ:AMD) own ambitions in the server CPU space. According to Cassidy, Micron’s comments point to a revitalized AI market and better conditions in the chip supply chain, which could lift several related stocks. And at the heart of Micron’s positivity is the role of DRAM, which Cassidy described as an essential component to AI systems and that limited supply will result in shortages.

Cassidy noted that despite DRAM prices rising, demand remains robust across all markets. And a key highlight is the surge in server shipments. As per Cassidy, Micron’s server unit volume shipments expectations are now high teens percent year on year from 10% last quarter. This momentum will carry into 2026, he stated.

For AMD, Cassidy pointed out that the strong server unit shipments confirm the company’s recent comments of server CPU TAM doubling to $60B by 2030. The company also set expectations for 50% market share from the current 40%.

Separately, Truist reduced its price target for AMD from $279 to $277 on December 19. The firm left the Buying rating unchanged. This move, the firm said, was part of a broader review of semiconductor and AI stocks, which resulted in updating models after setting estimates for 2027. William Stein, the lead analyst, anticipates some near-term challenges in the AI world, where companies face real hurdles like “finding the power to run AI infrastructure and getting the funding to pay for it.” But despite these issues, Stein is very optimistic about the companies, including AMD. He believes AI infrastructure semiconductor stocks remain cheap relative to their growth.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that designs and manufactures processors, graphics cards, and data center solutions. The company’s GPUs and custom chips are used by cloud providers and enterprises to support generative AI and machine learning applications.

While we acknowledge the potential of Advanced Micro Devices, Inc. (NASDAQ:AMD) as an investment, 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 the cheapest AI stock.

READ NEXT: 11 Best NYSE Stocks Under $5 to Buy and 11 Best Healthcare AI Stocks to Buy Now.

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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