This Is Why Advanced Micro Devices (AMD) Is a Top AI Stock to Own

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the top S&P 500 stocks by index weight. On April 13, Bank of America touted Advanced Micro Devices, Inc. (NASDAQ:AMD) as one of the top artificial intelligence stocks to own heading into Q1 earnings.

According to the investment bank, Advanced Micro Devices was one of the companies that capitalized on strong hyperscaler capital expenditure, which reached $166 billion in Q1, up 13% quarter over quarter. The increase was driven by high data center investment. Likewise, it remains well positioned to benefit as capital expenditure is expected to reach $750 billion before year-end and $872 billion in 2027.

AMD expects its first-quarter revenue to increase 32% year over year, driven by higher demand for its data center products. Amid the bullishness, Bank of America has a $280 price target on AMD, which represents 27 times 2027 non-GAAP earnings per share.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company that designs high-performance computing, graphics, and visualization technologies. As a fabless chipmaker, it focuses on chip design and engineering while outsourcing physical production to third-party manufacturers.

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