Analyst Says You Should 'Sit Tight' And Buy Advanced Micro Devices (AMD) Amid $2 Trillion Opportunity

We recently published 10 Buzzing News to Watch as Investors Look for Best AI Stocks Amid Fed Rate Cuts. Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the best AI stocks amid Fed rate cuts.

Ben Reitzes, Melius Research’s head of technology research, said in a program earlier in October that AMD is one of the “elite” semiconductor stocks he’s recommending.

“Well, we cover AI in general, and semis are part of it. We also cover Microsoft, Oracle, and many others, including Dell, and we see a lot of opportunities to win here. In semis, we’re kind of recommending the elite three now, which are Nvidia, Broadcom, and Advanced Micro Devices Inc (NASDAQ:AMD). We think the TAM for compute and networking is $2 trillion by the end of this decade, and maybe even higher. All this inferencing, and then autonomous vehicles and robots, are really going to continue to build out the infrastructure. Sit tight.”

Macquarie Core Equity Fund stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its second quarter 2025 investor letter:

“Advanced Micro Devices, Inc. (NASDAQ:AMD) designs and manufactures semiconductors, including central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions for various markets like gaming, data centers, and AI. The company currently maintains a small market share for GPUs used for AI applications though by 2027, we believe the company will have product on par with the market leader, NVIDIA. Hyperscale customers with deep programming expertise may increasingly decide to dual-source high-end chips leading to much larger revenue and profit gains in coming years for AMD than investors currently expect.”

While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, 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.