Hedge funds are buying these two big tech stocks while selling two rivals
Investing.com - Advanced Micro Devices (NASDAQ:AMD) stock rose approximately 6% in after-hours trading following the company’s first analyst day in three years, where Benchmark maintained its Buy rating and $325 price target. AMD shares are currently trading at $254.18, just 5% below their 52-week high of $267.08, with an impressive year-to-date return of 96.64%. According to InvestingPro data, AMD appears overvalued compared to its Fair Value estimate.
AMD doubled its estimated data center total addressable market (TAM) during the event, driven by growing artificial intelligence demand. The company provided aggressive revenue growth forecasts and increasing market share estimates, along with a long-term financial model projecting earnings per share above $20, exceeding previous Wall Street forecasts. This outlook builds on AMD’s current revenue growth of 31.83% over the last twelve months, with analysts anticipating continued sales growth this year.
Benchmark analyst Cody Acree noted AMD’s "rapidly growing leverage to the aggressively expanding AI Data Center market" across both its traditional server CPU portfolio and increasingly competitive AI GPUs. The firm highlighted significant recent partner announcements from companies committing to use AMD GPUs and its planned 2026 rack scale server platform.
Recent proof points of AMD’s improved competitive positioning include agreements with OpenAI for 6GW of capacity, Oracle for 50,000 MI450s, Meta for co-defining Helios, two U.S. Department of Energy supercomputers, multiple Sovereign AI projects, and engagements with leading hyperscalers. Most of these deployments are scheduled to begin in the second half of next year. InvestingPro identifies AMD as a prominent player in the Semiconductors industry, with stock price movements that are quite volatile – just two of over 20 ProTips available for this stock.
AMD projects it will achieve "tens of billions of annual AI revenue in 2027" and over $100 billion in data center revenue over the next 3-5 years, with the OpenAI partnership alone representing "well over $100 billion of revenue potential over the next few years," according to Benchmark’s report. With a current market capitalization of $416.18 billion and a P/E ratio of 127.75, AMD trades at a premium valuation relative to near-term earnings growth. The highest analyst price target stands at $380, suggesting potential upside from current levels. For comprehensive analysis, check out AMD’s detailed Pro Research Report, available on InvestingPro along with 1,400+ other US equities.
In other recent news, Advanced Micro Devices (AMD) has been the focus of several analyst updates and market developments. Stifel reiterated its Buy rating with a $280 price target following AMD’s 2025 Analyst Day, highlighting the company’s long-term growth strategy centered on technology leadership, software development, and intellectual property. Cantor Fitzgerald maintained an Overweight rating with a $350 price target, emphasizing AMD’s ambitious financial model for 2028-2030, which projects a revenue compound annual growth rate of over 35% and robust operating margins. Meanwhile, Morgan Stanley kept its Equalweight rating and $260 price target, noting uncertainty in AMD’s artificial intelligence market share prospects.
In market performance, AMD and ARM gained microprocessor market share in the third quarter of 2025, while Intel’s share declined, according to Mercury Research. Total microprocessor unit shipments increased by 3.9% quarter-over-quarter, surpassing typical seasonal growth rates. Piper Sandler also reiterated an Overweight rating with a $280 price target, citing optimism about AMD’s new business model targeting a $1 trillion silicon total addressable market by 2030. These developments reflect AMD’s strategic positioning and growth outlook in the semiconductor industry.
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