Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the
new stocks David Tepper has bought. As of December 29, the average price target for AMD suggests an upside of 34%; however, the Street high indicates an upside of 77%. In Q3 2025, David Tepper purchased 950,000 shares of AMD valued at $153.70 million, making it the billionaire’s largest new position during Q3.
Since December 15, the market has been abuzz with speculation that Samsung could potentially strike a deal with AMD to provide 2nm AI chips. This comes in light of the N-2 rule likely hindering Taiwan Semiconductor from manufacturing its most complicated nodes abroad. Reports suggest that Samsung’s Executive Chairman, Lee Jae-yong, had a meeting with AMD CEO Lisa Su as well as other Big Tech executives, to discuss the company’s foundry business and consequent business arrangements. The 2nm chipsets could power AMD's CPUs in the future, and a deal with Samsung could be closed in January 2026.
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Separately, Piper Sandler maintained an Overweight rating on Advanced Micro Devices on December 15, with a $280 price target, representing 33% upside from current levels. Overall, Wall Street analysts had a consensus Strong Buy rating on the stock. Piper remained optimistic about AMD’s short- and mid-term drivers, particularly noting the company’s ability to meet technical targets such as the MI300 series ramp and technical progress for the MI400 series rollout. Analysts also expect further sales growth this year.
The firm also told investors that AMD is putting notable resources into the Helios rack, which is slated for release in mid-2026. The company intends to widen its clientele beyond OpenAI, even though part of its new business is expected from that partnership. Piper Sandler noted that AMD’s finances seem to be sorted, and it can fund its development plans.
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
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Disclosure. None.
