Advanced Micro Devices (AMD)
Artificial intelligence (AI) is not just a buzzword anymore—it’s a tidal wave reshaping the landscape of modern industries. As companies and investors dive headfirst into the AI revolution, some hidden gems are quietly outshining the rest. Advanced Micro Devices (AMD), the unsung hero in the shadow of tech giants, has been silently soaring, defying expectations and surpassing milestones.
In a world fixated on the astronomical rise of Nvidia, AMD has been steadily making waves of its own. With a remarkable 147% surge over the past year and a substantial 46% increase in the current year, AMD’s stock is on the rise, hovering at $202 today and edging closer to its 52-week high of $227.
The company recently launched its MI300 graphics processing units, designed to tackle heavier AI workloads, signaling potential for even greater growth in the future. With a 6% year-over-year revenue surge in the fourth quarter and robust earnings of $0.41 per share, AMD is proving its mettle in the competitive semiconductor market.
The global data center industry’s voracious appetite for chips presents a ripe opportunity for AMD to capture a larger market share, potentially catapulting the stock to new heights. Analysts at Mizuho Securities have bestowed a buy rating on the stock with a price target of $235, making it a compelling choice for investors seeking a promising AI stock poised for significant gains.
Palantir Technologies (PLTR)
Palantir, a formerly aloof enigma operating in the government sector, has emerged as a force to be reckoned with in the business world. Boasting its first-ever quarter of positive net income in the fourth quarter, the company’s transformation has been nothing short of extraordinary.
With 103 deals secured in the quarter and a surge in commercial clients propelling its growth, Palantir’s focus on its Artificial Intelligence Platform (AIP) has been a game-changer. Achieving a 32% year-over-year increase in commercial business and an 11% rise in government revenue, the company’s total revenue has reached $608 million, with further growth projected in the near future.
Following its recent success, including a remarkable 48% year-to-date increase in stock value, Palantir is poised for continued growth. With Wall Street’s confidence in the company reaffirmed by Wedbush analysts raising the stock’s price target to $35, Palantir stands as a safe bet for investors seeking a stable yet promising AI stock.
Amazon (AMZN)
Amazon, a household name synonymous with e-commerce excellence, has quietly solidified its position as a top player in the AI domain. Often overlooked for its AI capabilities, Amazon’s diversified business model and extensive presence across various industries make it a hidden gem in the AI stock universe.
Amazon Web Services (AWS), a cornerstone revenue generator for the company, witnessed a substantial 13% year-over-year increase in revenue in the fourth quarter. With AWS raking in $24.2 billion in revenue during the quarter and a massive $91 billion for the year, Amazon’s strength in the AI arena is undeniable.
Despite its subdued performance, trading at $175 today with a modest 16% year-to-date increase, Amazon’s potential for growth remains untapped. The company’s attractive valuation and solid long-term prospects position it as a Wall Street favorite, with potential for sustained growth in the AI market.
