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Cathie Wood’s 11 Biggest AI and Data Center Stock Picks. Advanced Micro Devices Inc (NASDAQ:AMD) ranks #3 (see Cathie Wood’s 5 Biggest AI and Data Center Stock Picks).
Cathie Wood’s Stake: $551,414,664
Advanced Micro Devices Inc (NASDAQ:AMD) does not need to beat Nvidia to be a winner. It can do very well simply by being the strong second option next to Nvidia in AI infrastructure. AMD is an AI play because its products sit directly inside the systems that train and run artificial intelligence. Its EPYC CPUs handle core data center computing, while its Instinct GPUs are designed for AI training and inference workloads.
Rather than competing only at the chip level, Advanced Micro Devices Inc (NASDAQ:AMD) is moving toward solving the full AI infrastructure problem. It is combining GPUs, CPUs, and networking into one integrated system approach so that customers can build entire AI data center setups, not just buy individual components. This shift is important because AI is increasingly about large-scale systems, not single processors.
Morgan Stanley recently raised its price target on Advanced Micro Devices (NASDAQ:AMD) from $255 to $360 amid stronger semiconductor market conditions and rising demand across the chip sector. Morgan Stanley highlighted AMD’s MI355 GPUs and upcoming Helios rack systems. Helios racks are described as the bigger driver for Advanced Micro Devices Inc’s (NASDAQ:AMD) revenue this year. These systems combine GPUs, CPUs, and networking into full AI infrastructure setups, which is where most AI spending is shifting.
White Falcon Capital Management stated the following regarding Advanced Micro Devices, Inc. (NASDAQ:AMD) in its fourth quarter 2025 investor letter:
“The top 5 positions for the White Falcon portfolio are precious metal royalty companies, AMD, NFI Group, EPAM, and Nu Holdings. Advanced Micro Devices, Inc. (NASDAQ:AMD) designs a broad range of digital semiconductors serving PCs, gaming consoles, and data centers, including the rapidly expanding AI market. Under CEO Lisa Su, the company was pulled back from the brink of…..” (Click Here to Read the Letter in Detail)
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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