Advanced Micro Devices' (AMD) Competitive Position Versus Nvidia Underpins Raymond James' Confidence

Advanced Micro Devices Inc. (NASDAQ:AMD) is among the top 10 stocks to buy from Cathie Wood’s stock portfolio. With a value of approximately $495 million, the company accounts for about 3% of Cathie Wood-led ARK Investment Management’s 13F portfolio as of the end of September. During the third quarter, ARK increased its AMD position by roughly 13%, rising from 2.71 million to 3.06 million shares.

On November 20, Simon Leopold, an analyst from Raymond James, resumed coverage of Advanced Micro Devices Inc. (NASDAQ:AMD) with an Outperform rating and a price target of $377. This update was part of the analyst’s resumption of coverage of seven leading semiconductor companies, including Nvidia, Marvell, Broadcom, ARM, Astera Labs, and Intel.

Leopold appeared quite upbeat about these companies, believing that generative artificial intelligence has “transformed a typically cyclical market sector of semiconductors into a secular boom.” Moreover, he believes that semiconductors are proving to be the concrete base for “an unprecedented structural shift in the technology landscape.”

The analyst also considers Advanced Micro Devices Inc. (NASDAQ:AMD) “best positioned to compete with NVIDIA” in merchant GPUs. On his investment thesis, Leopold further elaborated:

“Investor skepticism lingers, but shares have attracted a broader audience than in the past and have delivered outstanding performance YTD… Fundamentals need to catch up, and we believe they will. The newest wins with OpenAI and HUMAIN for ~1 GW could be worth $15B in 2026. These grow to over 2 GW in 2027. AMD appears poised for continued server and PC share gains, too. Additionally, the OpenAI deployment may serve as an important endorsement for potentially encouraging other model builders and hyperscalers to adopt AMD GPUs. The AI TAM is large enough to support multiple chip suppliers, and AMD will be among the participants.”

Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.

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.

READ NEXT: 30 Most Fantastic Stocks Every Investor Should Pay Attention To and 10 Hottest Smid-Cap Stocks So Far In 2025.

Disclosure: None. This article is originally published at Insider Monkey.