Billionaire Bruce Kovner’s 10 Stock Picks with Huge Upside Potential

7. Advanced Micro Devices Inc. (NASDAQ:AMD)

Caxton Associates’ Stake: $132.87 million

Number of Hedge Fund Holders: 96

Average Upside Potential as of May 7: 31.00%

Advanced Micro Devices Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments. These are the Data Center, Client, Gaming, and Embedded segments. It offers AI accelerators, x86 microprocessors, and GPUs as both standalone devices and also incorporated into accelerated processing units, chipsets, and data center applications.

On May 5, Bank of America reiterated a Neutral rating on the stock with a $105 price target. Despite expectations of a strong quarter backed by server CPU sales and gains in desktop PC market share, AMD is set to face major challenges in the upcoming quarters. In particular, China’s restrictions on AMD’s MI308 products are anticipated to lead to a sales headwind and a decline in gross margins for the second quarter.

Wedbush’s Matt Bryson also pointed out that AMD is still gaining market share in the compute sector, both in servers and PCs. The analyst believes that while Advanced Micro Devices Inc. (NASDAQ:AMD) is already outperforming in desktop computers, there is still potential for growth in the notebook segment in 2025. In Q4 alone, the revenue increased by 24% to a record $7.7 billion due to record quarterly data center and client segment revenue.