Advanced Micro Devices Inc. (NASDAQ:AMD) is a top stock in Cathie Wood’s portfolio, valued at $495 million. ARK Investment Management increased its AMD position by 13% in the third quarter, now holding 3.06 million shares. Analyst Simon Leopold gave AMD an Outperform rating with a $377 price target.

Leopold sees semiconductors as a booming sector due to generative artificial intelligence. He believes AMD is well-positioned to compete with NVIDIA in merchant GPUs. Leopold’s investment thesis includes significant growth potential for AMD, citing wins with OpenAI and HUMAIN worth $15B by 2026.

AMD specializes in high-performance computing and graphics solutions, including microprocessors and system-on-chip solutions for data centers and gaming. While AMD is a strong investment, some AI stocks may offer greater upside potential. For a potential undervalued AI stock with growth potential, check out a free report on the best short-term AI stock.

Read more at Yahoo Finance: Advanced Micro Devices’ (AMD) Competitive Position Versus Nvidia Underpins Raymond James’ Confidence