Advanced Micro Devices (AMD) Faces Price Target Reductions Amid AI Market Growth and Sector Caution - InvestingChannel

Advanced Micro Devices (AMD) Faces Price Target Reductions Amid AI Market Growth and Sector Caution

We recently published a list of 12 AI News and Ratings Investors Are Watching Right Now. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against other AI news and ratings investors are watching right now.

Redefining Innovation with Next-Generation AI

At CNBC’s ‘Money Movers’, Jack Hidary, CEO of Sandbox AQ, emphasized the shift towards B2B-focused AI, positioning it as the next major evolution in artificial intelligence. While language models like those from OpenAI have excelled in consumer applications, Hidary highlighted the untapped potential of quantitative AI (QAI) in driving innovation across industries like pharmaceuticals, automotive, and energy. QAI uses fundamental equations to generate new data, which enables advancements in drug development, materials for energy storage, and aerospace.

Hidary pointed out that large quantitative models are set to transform product development by creating significant economic value, unlike large language models, which primarily reduce operational costs. He predicts that 2025 and beyond will see a growing focus on AI’s role in addressing critical challenges in B2B sectors, from building better batteries to accelerating medical breakthroughs. This evolution underscores a future where AI goes beyond text-based applications, becoming a cornerstone for innovation across various industries.

READ ALSO: 10 AI News Dominating Wall Street Today and 11 Important AI News and Ratings for Investors.

The Role of Generative AI in Transforming Sales Strategies

As per a Mckinsey report, An unconstrained future: How generative AI could reshape B2B sales, GenAI is transforming B2B sales by improving efficiency, fostering growth, and reshaping sales operations. While the core role of sellers including building trust, creating value, and minimizing friction remains unchanged, generative AI enables productivity gains through automation, personalized insights, and strategic guidance.

Companies adopting these tools report improved customer experiences, faster sales processes, and new growth opportunities. Looking ahead, AI integration is expected to redefine sales models, emphasizing customer outcomes, long-term success, and collaboration between human and AI-driven agents. To adapt, businesses must embrace agile strategies, invest in AI-driven capabilities, and align their sales approaches with evolving customer expectations.

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. We listed the stocks in ascending order of their hedge fund sentiment taken from Insider Monkey’s database of 900 hedge funds.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

Advanced Micro Devices, Inc. (AMD) Faces Price Target Reductions Amid AI Market Growth and Sector Caution A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices, Inc. (NASDAQ:AMD)

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) specializes in semiconductor solutions, offering processors and GPUs for data centers, gaming, and embedded systems. The company focuses on providing high-performance computing products for AI-driven applications.

On December 20, Morgan Stanley reduced its price target for AMD from $169 to $158, maintaining an Equal Weight rating on the stock. The firm remains positive on the semiconductors industry, highlighting the AI market’s growth, but notes that a “U-shaped bottom” is expected for other areas. Priorly, Truist had also reduced its price target for AMD from $156 to $145 with a Hold rating on the stock. The firm expressed caution about the semiconductor and AI sectors.

Overall, AMD ranks 5th on our list of AI news and ratings investors are watching right now. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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

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