From Nasdaq:

Advanced Micro Devices (NASDAQ: AMD) has had a successful journey since its founding, especially under its CEO Lisa Su. It has taken over the CPU market, and now has a 36% market share, while Intel’s share has dwindled to 61%. The company’s stock has grown over 4,000% since 2014, and it still has much to offer new investors.

With the company’s venture into AI, there is potential for high growth. AI’s market is projected to expand at a compound annual growth rate of 37% through 2030 and become a $1 trillion industry. Despite Nvidia’s dominance, AMD’s new MI300X AI GPU is set to challenge its hold.

AMD’s AI GPU has caught the interest of major companies like Microsoft and Meta Platforms. As a relative newcomer, AMD still has ample opportunity for growth in the AI market, making it an appealing investment choice.

As a leading chipmaker, demand for AMD hardware is expected to continue rising. A Rosenblatt Securities analyst has given AMD a price target of $200, which is 45% higher than its current position. Multiplying earnings-per-share estimates by the forward price-to-earnings ratio yields a stock price of $180. AMD is considered one of the most attractive stocks for January due to its expanding role in AI.

Before investing in AMD, investors should consider the Motley Fool’s 10 best stocks to buy now. It is also important to note that the views and opinions expressed herein are those of the author and do not necessarily reflect Nasdaq, Inc. and to note the disclosure policy from the Motley Fool.



Read more: If You Invested $10,000 in AMD When Lisa Su Became CEO, This Is How Much You Would Have Today