From Nasdaq:

The technology sector has been abuzz with the artificial intelligence (AI) revolution for over a year. Microsoft-backed generative AI company OpenAI, parent of ChatGPT, has snowballed into a technological zeitgeist. The companies creating the architecture on which AI is based are thriving.

According to a report by the Semiconductor Industry Association, total sales from the semiconductor industry could reach $1 trillion by 2030. Top semiconductor funds like the iShares Semiconductor ETF (SOXX) and VanEck Semiconductor ETF (SMH) are up 50% and 59% over the past year, respectively.

Semiconductor giant Advanced Micro Devices (AMD) stands out as a strong long-term pick among analysts. AMD is one of the world’s largest suppliers of microprocessors and related technologies for the computing and graphics industries with a market cap of $256.27 billion.

AMD’s Q3 results exceeded analyst expectations, with revenues of $5.8 billion, up 4% from the prior year. Adjusted EPS for the quarter rose to $0.70, surpassing the consensus estimate of $0.68. The company’s EPS has topped expectations in four out of the past five quarters.

Among tech stocks, AMD stands out as a top growth pick with forward revenue growth projected at 17.58% and long-term EPS growth projections at 31.95%. The company recently introduced its most powerful GPU to date, the MI300X, made specifically for generative AI.

Analysts are upbeat about the outlook for AMD’s stock, with an average “Strong Buy” rating and a mean target price of $144.39. Out of 30 analysts covering the stock, 24 have a “Strong Buy” rating, 1 has a “Moderate Buy,” and 5 have a “Hold” rating.



Read more: Will Advanced Micro Devices Stock Double From Here?