Wells Fargo Maintains Overweight Rating for Advanced Micro Devices (AMD)

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the 10 best AI chip stocks to buy according to hedge funds.

On April 1, Wells Fargo maintained the price target on Advanced Micro Devices Inc. (NASDAQ:AMD) at $345 while reiterating an Overweight rating. The firm recently placed AMD in its second-quarter Tactical Ideas List.  According to the firm, the company is exhibiting a favorable setup as it heads towards its first quarter results.

The positive outlook is driven by strong demand for EPYC server CPU, along with new GW-scale AI GPU announcements. The upcoming Accelerating AI event in July will likely serve as another positive driver for the company.

On April 2, UBS reiterated a Buy rating and $310 price target on Advanced Micro Devices Inc. (NASDAQ:AMD), citing confidence in revenue growth for 2027. The firm believes that beyond the engagements with OpenAI and Meta Platforms, additional potential exists for a third gigawatt-scale deal, and Microsoft would likely be the best candidate.

As per UBS, because of the shipment of MI450 in 2026 under the OpenAI deal, and subsequently the shipment by Meta, AMD presents a compelling investment case for the second half of this year.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a multinational semiconductor company that designs high-performance computing, graphics processing units, and visualization technologies. The company also offers AI accelerators, microprocessors, embedded processors, and SoC products. The business is structured around three segments, i.e., Data Center, Client & Gaming, and Embedded.

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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