Citi Reiterates Hold Rating on Advanced Micro Devices (AMD) Stock

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Best Reddit Stocks to Invest in Now. On September 4, Citi reiterated a “Hold” rating on the company’s stock, with a price objective of $180.00. The analyst’s rating is backed by a combination of factors associated with Advanced Micro Devices, Inc. (NASDAQ:AMD)’s growth prospects and valuation. The company is anticipated to see strong growth in its AI business, mainly through its GPU offerings, which are expected to capture a meaningful portion of the AI compute total addressable market.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is expected to benefit from increased demand from existing and new customers, including well-established players such as Microsoft, Meta, and Oracle. The company delivered healthy revenue growth in Q2 2025, led by record server and PC processor sales. Advanced Micro Devices, Inc. (NASDAQ:AMD) continues to see healthy demand throughout its computing and AI product portfolio and remains well-placed to deliver healthy growth in H2 2025.

Longriver Investment Partners released its Q2 2025 investor letter. Here is what the fund said:

“Nvidia’s NVLink, its high-bandwidth interconnect, underpins training at scale, where GPUs must coordinate across racks. NVLink Fusion, announced this year, may extend that advantage by letting custom chips plug into Nvidia’s system rather than replace it. However, many inference tasks can be handled independently, one GPU at a time. That lowers the importance of networking, and with it, Nvidia’s edge in tightly integrated systems.

This has given Advanced Micro Devices, Inc. (NASDAQ:AMD) a window to become more than a second source. Its MI300X is now deployed at Microsoft, Meta, Oracle, and Dell. In some inference workloads, it beats Nvidia’s H100. As one expert put it, “ROCm used to be a science project. Now we’re finally seeing it run real workloads.” AMD plans to ship full-rack MI400 systems next year. It still trails in training, but inference gives it a real wedge into the market.

AMD is also leaning into openness. ROCm is open source, its interconnects run over Ethernet, not proprietary links, and it is sticking with x86 CPUs. That may appeal to buyers wary of lock-in or reluctant to cross-compile for ARM.”

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.