We recently compiled a list of the 10 High-Potential AI Stocks to Watch Right Now. In this article, we are going to take a look at where Advanced Micro Devices, Inc. (NASDAQ:AMD) stands against the other high-potential AI stocks.

China is making significant strides in integrating artificial intelligence in its economy. Laying out its major policy priorities for 2025 at an annual parliamentary meeting on March 5th, it discussed how it plans to spur consumption and achieve technological breakthroughs.

Premier Li Qiang's government work report said that AI would be integrated into the country's manufacturing base, and that the country pledges to accelerate artificial intelligence development in the country, as per Reuters.

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The plans involve a broader deployment of large language models and leveraging China's industrial strengths to expand AI applications. Embodied intelligence - the technology underlying humanoid robots, was also highlighted as a key industry of the future.

Chinese AI startup DeepSeek sent shock waves through the global tech market ahead of the Lunar New Year, but has also sparked a rise of Chinese companies in artificial intelligence (AI).

"DeepSeek adheres to an open-source approach and promotes the widespread application of AI technology globally, which contributes Chinese wisdom to the world. Through the rise of companies like DeepSeek, we can see the innovation and inclusiveness of China's technological development"

-Lou Qinjian, Spokesperson for China’s parliament.

Ever since its rise, President Xi Jinping has been encouraging tech leaders to pursue AI efforts. China intends to foster more technological breakthroughs and become more self-reliant. The country has said that it wants to foster "industries of the future" including biomanufacturing, quantum technology, embodied AI and 6G technology.

In this regard, it will also explore new models for national laboratories and extend strong support and "important responsibilities" to young scientists and engineers. The application of large-scale AI models and the development of next-generation intelligent terminals and smart manufacturing terminals will also be reinforced.

"China will strive to create an enabling environment for innovation that encourages exploration and tolerates failure."

For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.

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)

Number of Hedge Fund Holders: 107

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops semiconductors, providing processors and graphics technologies for gaming, data centers, and AI-driven high-performance computing. On March 3^rd, Advanced Micro Devices, Inc. (NASDAQ:AMD), together with Jio Platforms Limited, Nokia, and Cisco, announced plans to form an innovative, new Open Telecom AI Platform at the Mobile World Congress 2025.

The Telecom AI Platform will be developed to support operators and service providers with real-world, AI-driven solutions, paving the way for unmatched efficiency, security, capabilities, and new revenue opportunities for the industry. The AI Platform will create a new central intelligence layer for telecom and digital services, integrating AI and automation into each layer of network operations. Agentic AI and both Large Language Models (LLMs), domain-specific Small Language Models (SLMs), and non-GenAI machine learning techniques will be used to enable end-to-end intelligence for network management and operations.

“AMD is proud to collaborate with Jio Platforms Limited, Cisco, and Nokia to power the next generation of AI-driven telecom infrastructure. By leveraging our broad portfolio of high-performance CPUs, GPUs, and adaptive computing solutions, service providers will be able to create more secure, efficient, and scalable networks. Together we can bring the transformational benefits of AI to both operators and users and enable innovative services that will shape the future of communications and connectivity.”

-Lisa Su, chair and CEO, AMD.

Overall AMD ranks 8th on our list of the high-potential stocks to watch right now. While we acknowledge the potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher 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.

 

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