We recently published a list titled "10 AI Stocks That Will Skyrocket. " This article focuses on how Advanced Micro Devices, Inc. (NASDAQ:AMD) compares with other AI stocks expected to soar. Artificial Intelligence (AI) is no longer a mere buzzword; it is increasingly integrated into daily life, influencing apps and business operations. For investors, this surge presents substantial opportunities. As AI expands, certain companies are pioneering advancements with strong long-term growth potential. Whether aiming to diversify assets or invest in future technologies, this article highlights some of the most promising AI stocks to watch. AI stocks have experienced remarkable gains, especially in 2024, driven by rapid AI adoption. Current geopolitical tensions have caused a temporary dip in AI stock prices, potentially offering a strategic buying opportunity. AI’s Applications Are Expansive Ark Invest’s CEO and CIO, Cathie Wood, expressed strong optimism about the AI sector in a CNBC interview despite recent stock weaknesses. She likened AI’s current phase to the internet boom of the 1990s, noting vast growth potential. Wood is particularly excited about near-term developments like robotaxis and long-term applications involving humanoid robots. However, she considers healthcare the most undervalued AI use case, emphasizing AI’s transformative role in accelerating disease cures. Specifically, Wood is bullish on sequencing technology, which decodes DNA. AI enhances sequencing by rapidly analyzing and interpreting genetic data more accurately than traditional methods. Generative AI is a hot segment right now. It produces customized responses based on real data and has sparked an investment cycle exceeding $200 billion annually, led by the “magnificent 7” tech giants who intensely compete for leadership. Another emerging AI theme involves large language models (LLMs).

According to Morgan Stanley, top companies developing advanced LLMs prioritize high-performance chips and superior software, delivering essential AI solutions for businesses and consumers. Initially used for content creation, summarization, and categorization, future LLM applications aim to apply AI reasoning to enterprise data, representing a significant untapped opportunity. Our Methodology To identify AI stocks poised to skyrocket, we analyzed AI-focused ETFs to build an initial stock list, then selected those with the highest upside based on Wall Street analysts’ average price targets. We also considered hedge fund sentiment for each stock as of Q4 2024. Note: All data is as of April 21, 2025. At Insider Monkey, we track stocks favored by hedge funds because our research shows that mimicking top hedge fund picks can outperform the market. Our quarterly newsletter features 14 small- and large-cap stocks each quarter and has achieved a 373. 4% return since May 2014, outperforming its benchmark by 218 percentage points. Advanced Micro Devices, Inc. (NASDAQ:AMD) Upside Potential: 63. 63% Number of Hedge Fund Holders: 96 AMD is a leader in high-performance computing, delivering technologies crucial to data centers, PCs, AI, gaming, and edge computing. Its product range includes CPUs, GPUs, AI accelerators, FPGAs, APUs, and embedded systems. AMD is advancing with its Instinct MI400 series tailored for AI workloads. Utilizing CDNA Next architecture and a chiplet design, the MI400 positions AMD to challenge Nvidia’s dominance in AI accelerators. AMD’s EPYC server processors have already gained significant traction in the data center market, and its Instinct GPUs are expected to boost cloud AI growth. The company’s partnership with Waymo underscores its involvement in autonomous driving and AI-powered transport. As autonomous vehicle technology evolves, AMD’s AI capabilities in automotive systems will place it at the forefront of this revolution. AMD ranks 3rd on our list of AI stocks poised for rapid growth. While we recognize AMD’s strong prospects, we believe other AI stocks may offer higher returns in shorter periods. Notably, one AI stock has risen since early 2025 even as popular AI stocks fell roughly 25%. For those seeking a promising AI stock trading under five times earnings and with more upside than AMD, we recommend reading our detailed report on the cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. Originally published at Insider Monkey.