Is Advanced Micro Devices (AMD) A Reddit Stock with High Potential?
We recently published a list of the . In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other Reddit stocks with high potential.
On April 15, Monica Guerra, Morgan Stanley Wealth Management Head of US Policy, joined 'Closing Bell Overtime' on CNBC to discuss how investors should avoid knee-jerk reactions when it comes to volatility. Monica Guerra pointed out the significance of focusing on President Trump's statements, as they contribute to market volatility despite their mixed and unclear nature. She acknowledged that deciphering his comments is challenging because they lack clarity but staying attentive to both presidential statements and congressional actions is still crucial. She stressed that policy certainty might emerge once Congress finalizes the budget, which is expected around August this year.
She also emphasized that while the day started positively with markets up by 0.79%, the situation otherwise remains uncertain. She reminded clients that the 90-day reprieve on tariffs is not the end of the story and the ongoing studies on semiconductors could lead to additional pressures related to tariffs and market volatility. Guerra noted that tariff revenues are being considered as funding sources for tax cuts and this interplay between tariffs and taxes could influence market volatility. On discussing future developments in tariff policy, she mentioned that more than 70 countries have approached President Trump in attempts to renegotiate the universal 10% tariff and reciprocal tariffs. She cautioned that even if reciprocal tariffs are eliminated and only the universal tariff remains, additional increases could be highly inflationary. China's effective tariff rate is already at 145% and adding reciprocal tariffs could push inflationary pressures further.
Guerra advised clients against reacting impulsively to such news and encouraged them to focus on long-term investment goals.
We sifted through Reddit threads to make a list of the top stocks with the highest analysts' upside potential (at least 30%) as of April 15. The stocks are ranked in ascending order of their upside potential. We have also added the hedge fund sentiment for each stock, as of Q4 2024. The hedge fund data was sourced from Insider Monkey's database which tracks the moves of over 1000 elite money managers.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close up of a complex looking PCB board with several intergrated semiconductor parts.
Number of Hedge Fund Holders: 96
Average Upside Potential as of April 15: 48.15%
Advanced Micro Devices, Inc. (NASDAQ:AMD) is a semiconductor company that operates through four segments: Data Center, Client, Gaming, and Embedded. It offers products like AI accelerators, x86 microprocessors, and GPUs. It serves OEMs and design manufacturers, public cloud service providers, system integrators, independent distributors, and add-in-board manufacturers, among other customers.
On April 8, TD Cowen analyst Joshua Buchalter maintained a Buy rating on the stock while lowering its price target to $110 from $135. The buy rating comes from AMD's potential for growth despite negativity in the computing sector. Analysts believe that AMD's upcoming launch of the MI355X mid-year will likely drive growth in its data center GPU segment. Although tariffs are a concern as well, the company is focused on capturing value in the AI sector.
Advanced Micro Devices, Inc. (NASDAQ:AMD) recorded a revenue of $7.7 billion in Q4 2024, which was 24% improvement year-over-year. This was driven by the company's Data Center segment where revenue almost doubled year-over-year due to the rapid adoption of EPYC processors. On March 31, Advanced Micro Devices (NASDAQ:AMD) also completed its acquisition of ZT Systems, which provides AI and compute infrastructure to major hyperscale providers. This acquisition is expected to accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.
Overall, AMD ranks 4th on our list of the 12 Reddit stocks with high potential. While we acknowledge the growth potential of AMD, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
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