We recently published a list of 11 Stocks That Will Go to the Moon According to Reddit. In this article, we are going to take a look at where Advanced Micro Devices Inc. (NASDAQ:AMD) stands against other stocks that will go to the moon according to Reddit.

Saira Malik, Nuveen’s Head of Equities and Fixed Income, recently joined CNBC’s ‘Closing Bell’ on February 18 to discuss opportunities outside the tech sector and her outlook for the markets. She began by addressing the two primary factors driving markets this year: technology and tariffs. Malik highlighted that while tech stocks have dominated the narrative, recent developments, such as DeepSeek’s announcement, have raised concerns about the immense spending in AI and the uncertainty surrounding its monetization and returns. Malik emphasized looking beyond tech to areas like infrastructure. She mentioned utility companies as a promising investment. When asked about momentum stocks, Malik explained that the momentum trade has propelled markets over the past few years, with the S&P 500 delivering over 20% annual gains during that period. However, this growth was largely concentrated in the MAG7, which resulted in an S&P 500 valuation premium of 20% above historical averages entering this year. She noted that the momentum trade is now unwinding, partly due to inflated expectations around AI and the lack of productivity gains despite tens of billions of dollars spent in the space.

Malik pointed out that international markets are outperforming US markets this year. European markets, in particular, entered 2025 with a 40% valuation discount compared to US markets and have a more cyclical bias. She stated that year-to-date returns suggest investors would benefit from owning international equities. While she expects the S&P 500 to post about 7% earnings growth for 2025 (following a strong Q4 with 12% year-over-year earnings growth), she believes international markets may continue to outperform due to their discounted valuations and cyclical exposure. Malik concluded by emphasizing the importance of being selective in this market environment. She recommended focusing on smaller mid-cap companies with profits, lower leverage, reduced refinancing risks, or economic sensitivity. Sectors like financials could thrive if deregulation or increased mergers and acquisitions activity materialize. She advised investing in stocks with upward earnings estimate revisions rather than those facing downward adjustments to capitalize on current market conditions.

Methodology

We first sifted through threads and posts on WSB and similar subreddits to compile a list of the top trending stocks among retail investors. We then selected the 11 stocks that analysts were bullish on and had an average upside potential over 40% as of March 3. We also added the hedge fund sentiment for each stock, as of Q4 2024, which was sourced from Insider Monkey’s database. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them.

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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A close up of a complex looking PCB board with several intergrated semiconductor parts.

Advanced Micro Devices Inc. (NASDAQ:AMD)

Upside Potential as of March 3: 40.20%

Number of Hedge Fund Holders: 96

Advanced Micro Devices Inc. (NASDAQ:AMD) is a global semiconductor company that provides a range of products across Data Center, Client, Gaming, and Embedded segments. It offers CPUs, GPUs, FPGAs, and AI accelerators under brands like Ryzen, Radeon, and EPYC. It serves diverse markets through direct sales and channel partners.

Its data center segment contributes to around 50% of annual revenue. In 2024, data center revenue hit a record $3.9 billion, which was up 69% year-over-year. This growth was fueled by the strong EPYC processor adoption, with over 50% market share at major hyperscale cloud providers. Its data center AI business generated over $5 billion in revenue in 2024. MI300X deployments expanded with major cloud partners. Instinct platforms are being deployed across more than a dozen cloud service providers. Advanced Micro Devices Inc. (NASDAQ:AMD) now plans to accelerate MI350 series shipments. It’s aiming for mid-year production. It’s also progressing with the MI400 series for a 2026 launch.

Daiwa downgraded Advanced Micro Devices Inc. (NASDAQ:AMD) to Outperform on February 14, with a $130 price target, which was down from $170. This sentiment came from its weak H1 2025 guidance. Despite strong Q4 2024 results, slow MI325 GPU ramp-up and a projected $800 million data center revenue decline caused concern. For Q1 2025, the company expects a revenue of ~$7.1 billion, a 30% year-over-year rise.

Overall, AMD ranks 3rd on our list of stocks that will go to the moon according to Reddit. While we acknowledge the growth potential of AMD, our conviction lies in the belief that AI stocks hold great promise for delivering high 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: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

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