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With New AI GPUs, Citi Sees Momentum Building for Advanced Micro (AMD)

Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the 10 best tech stocks to buy according to billionaires right now. On June 9, Citi analyst Christopher Danely raised his price target for Advanced Micro Devices to $120 from $100, maintaining a Neutral rating. The analyst’s outlook is influenced by several factors, including AMD’s latest product launches and the potential to attract new customers, which could be further enhanced by the company’s upcoming event “Advancing AI’ on June 12.

Danely notes that investors are watching closely as Advanced Micro Devices Inc. (NASDAQ:AMD) unveils the MI355X and shares updates on the MI400. While expectations are high, there are concerns about profitability, especially since AMD acknowledges that its AI-focused products are currently weighing on margins. The analyst believes that the question now is how the company plans to improve its financial position.

Advanced Micro Devices Inc. (NASDAQ:AMD) has certain strengths compared to Nvidia, such as expanded HBM capacity in the MI355X and a more flexible approach with its ROCm software. Despite this, the analyst believes that Nvidia continues to dominate the market and creates a competitive challenge.

Looking ahead, Danely expects AMD to gain momentum in the second half of 2025. He notes that a recovery in the high-margin Xilinx segment could boost overall profitability, while the MI355X and MI400 launches may strengthen its presence in key AI business.

While a one-time charge linked to export controls has prompted him to adjust his earnings forecast, the analyst raised the price target to reflect improving sentiment in the sector.

In addition, Bank of America analyst Vivek Arya recently pointed to similar trends for AMD following conversations with the company’s management. He observed that AMD is experiencing solid sell-through momentum in the second quarter, supported by the launch of higher average selling price (ASP) products. Arya also noted the potential for typical seasonal strength in the second half of the year.

On another note, the stock also recently found support after the company revealed its New Ryzen Xbox Gaming Chips that will be featured in Microsoft’s upcoming ROG Xbox Ally handheld devices.

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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