Advanced Micro Devices Inc (NASDAQ:AMD) is one of the 10 Stocks to Buy and Sell in 2025: Top Analyst Calls.
Ben Reitzes, Melius Research managing director, recently said in a program on CNBC that Nvidia getting the permission to start selling AI chips in China is also “great” for Advanced Micro Devices Inc (NASDAQ:AMD). He believes AMD could benefit if it manages to get even 5% of the total market share amid a rise in inference.
“Our thesis on Advanced Micro Devices Inc (NASDAQ:AMD) is I mean how could they—Lisa Su is real. She’s great. She’s very compelling. Nothing against Jensen, but how do they not get like 5% share of the market? Not even 10. If they get 5% of the market in 2028, that’s 25 billion in GPU sales. That’s like 950, 10 bucks in earnings. So, our bet on Advanced Micro Devices Inc (NASDAQ:AMD) is they have a good product. It’s really good for inferencing and people are going to give them a look. So, we’re hearing, you know, like Meta’s a little more interested in some of the new stuff. X, XAI, OpenAI really interested. So our thesis there now, China for them is it could be like add 20% plus to their AI revenue, but they don’t have—they just have one, the old chip they were selling. We need to hear about more chips to get more confident, but it’s great for Advanced Micro Devices Inc (NASDAQ:AMD). Don’t get me wrong. It’s great for AMD.”
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Advanced Micro Devices (NASDAQ:AMD) bulls believe the market should stop comparing the company’s chips with Nvidia and focus on its data-center growth and its competitive edge over other players like Intel. Advanced Micro Devices (NASDAQ:AMD)’s strong growth in the data center segment is indeed impressive, driven by Instinct GPU shipments and strong sales of EPYC CPUs. Advanced Micro Devices (NASDAQ:AMD) will continue to benefit from organic growth catalysts in this segment despite the competition from Nvidia. According to Goldman Sachs Research, global data center demand could surge by 160% by 2030. In the U.S., data centers are projected to use 8% of total power by 2030, up from 3% in 2022. McKinsey estimates that adding the required U.S. capacity will need over $500 billion in infrastructure investment by the decade’s end.
Longriver Partners Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:
“Nvidia’s NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia’s system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia’s edge in tightly integrated systems.
This has given Advanced Micro Devices, Inc. (NASDAQ:AMD) a window to become more than a second source. Its MI300X is now deployed at Microsoft, Meta, Oracle, and Dell. In some inference workloads, it beats Nvidia’s H100. As one expert put it, “ROCm used to be a science project. Now we’re finally seeing it run real workloads.” AMD plans to ship full-rack MI400 systems next year. It still trails in training, but inference gives it a real wedge into the market.
AMD is also leaning into openness. ROCm is open source, its interconnects run over Ethernet, not proprietary links, and it is sticking with x86 CPUs. That may appeal to buyers wary of lock-in or reluctant to cross-compile for ARM.”
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.
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Disclosure: None. This article is originally published at Insider Monkey.
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