Billionaire Louis Bacon’s 10 Stock Picks with Huge Upside Potential

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

Moore Global Investments’ Stake: $108.71 million

Number of Hedge Fund Holders: 96

Average Upside Potential as of May 2: 36.58%

Advanced Micro Devices Inc. (NASDAQ:AMD) offers products like AI accelerators, x86 microprocessors, and GPUs through its Data Center, Client, Gaming, and Embedded segments. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers through its direct sales force and sales representatives.

Seaport Global started coverage of the stock on April 30 with a $110 price target and a Buy rating. Seaport is confident in AMD’s ability to gain market share. AMD delivered record annual revenue in 2024 while more than doubling free cash flow from 2023. In Q4 alone, the revenue increased by 24% to a record $7.7 billion due to record quarterly data center and client segment revenue.

The data center segment contributed ~50% of annual revenue as Instinct and EPYC processor adoption expanded with cloud, enterprise, and supercomputing customers. 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.