Undervalued tech stocks like AMD and Aehr Test Systems offer long-term growth potential

From Nasdaq: 2024-12-28 08:15:00

In 2024, tech giants like Nvidia, Palantir, and Apple have surged in value, but some undervalued tech stocks are worth consideration. Analysts recommend investing in stocks with long-term growth potential, like Advanced Micro Devices (AMD), which has seen a recent valuation pullback despite solid business performance.

AMD’s stock is down 40% from its peak this year, but revenue grew 18% year over year in the third quarter. While the company faces competition in the GPU market, its AI-related segment is growing rapidly, offering investors a chance for significant gains. Aehr Test Systems, a provider of chip testing equipment, is also seen as a promising investment with potential for growth.

Despite a challenging year for Aehr Test Systems due to a slowdown in EV sales, the company’s recent deal diversifies its customer base and end markets, making it a strong buy for enterprising investors. With growth potential in both the chip industry and AI sectors, Aehr Test Systems could see a rebound in its stock price.

For investors looking for the best stocks to buy in 2025, analysts suggest considering AMD and other overlooked companies. With the potential for significant gains, these stocks offer opportunities for long-term growth. Stock Advisor’s top picks have a track record of outperforming the market, making them worth a closer look for savvy investors.



Read more at Nasdaq: 2 Stocks Down 40% and 72% to Buy Right Now