Advanced Micro Devices Inc. (NASDAQ:AMD) is one of the best future stocks to buy for the long term. On January 15, Citi maintained a Neutral rating on AMD with a $260 price target. This decision was made following a transfer of coverage, when the firm noted that while the company’s AI division is expanding, this growth is being dampened by muted margin leverage. Citi explained that the costs of scaling are currently preventing AI gains from significantly boosting overall profitability.
Furthermore, on January 14, RBC Capital initiated coverage of Advanced Micro Devices Inc. (NASDAQ:AMD) with a Sector Perform rating and a price target of $230. The firm noted that while the OpenAI deal proves AMD is a credible GPU supplier for hyperscale projects, the stock’s current valuation likely already accounts for the expected 1GW initial ramps. Consequently, RBC Capital sees few immediate catalysts for the stock until the MI450 ramps for OpenAI in Q4.
Earlier on January 5, Advanced Micro Devices launched the Ryzen AI Embedded family, which is a new series of x86 processors designed specifically for edge AI applications. The portfolio introduces the P100 and X100 Series, which target sectors requiring HPC in compact environments, such as automotive digital cockpits, industrial automation, smart healthcare, and humanoid robotics.
Advanced Micro Devices Inc. (NASDAQ:AMD) operates as a semiconductor company worldwide. It operates in three segments: Data Center, Client and Gaming, and Embedded.
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.
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Disclosure: None. This article is originally published at Insider Monkey.
