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With a YTD Return of 81.29% as of May 7, Advanced Micro Devices, Inc. (NASDAQ:AMD) is included among the 10 Best Stocks to Buy to Beat the S&P 500.

On May 7, TD Cowen raised its price recommendation on Advanced Micro Devices, Inc. (NASDAQ:AMD) to $500 from $290. It reiterated a Buy rating on the shares. The firm said earlier concerns around elevated expectations were outweighed by AMD’s decision to double its server CPU total addressable market forecast that was issued just six months ago. TD Cowen also pointed to growing confidence in the company’s data center GPU engagements.

On the same day, Cantor Fitzgerald raised its price goal on AMD to $500 from $450. It maintained an Overweight rating on the stock. The firm said AMD delivered strong quarterly results, driven by accelerating growth in server CPUs and AI GPUs. Revenue and earnings per share both came in ahead of expectations, while tight industry supply conditions also supported performance. According to the analyst, AMD remains positioned for continued momentum as AI-related demand grows, new products ramp up, and data center opportunities expand. The firm added that some margin pressure, operating expense growth, and supply constraints still remain.

Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing and artificial intelligence. Its business segments include Data Center, Client and Gaming, and Embedded.

While we acknowledge the potential of AMD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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