Zacks Investment Insights Spotlight: Tesla, Honeywell International, Teradyne, UiPath, Ondas, and Unusual Machines
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 05 2025
0mins
Source: NASDAQ.COM
Market Reaction to Tariffs: Following President Trump's 'Liberation Day' tariff rollout, stock prices fell sharply, raising inflation concerns among economists and investors, despite the consumer price index stabilizing around 3%.
AI and Robotics Initiatives: The Trump Administration is focusing on AI-driven productivity growth, appointing an 'AI Czar' and planning a robotics-specific executive order to enhance innovation and infrastructure in the sector.
Investment Opportunities: Analysts suggest that while investors are currently fixated on large language models, they should also consider the upcoming robotics revolution as a significant growth opportunity.
Zacks Investment Strategies: Zacks Investment Research highlights its successful stock-picking strategies, which have outperformed the S&P 500, and offers insights into high-potential stocks in the AI and robotics sectors.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
36 Analyst Rating
27 Buy
9 Hold
0 Sell
Strong Buy
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
Current: 205.940
Low
200.00
Averages
284.10
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing, graphics and visualization technologies. Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes artificial intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), smart network interface Cards (SmartNICs) and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, GPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
Riot Platforms Stock Rises Amid Earnings Anticipation
- Bitcoin Holdings: Riot Platforms currently holds over 18,000 Bitcoins, valued at more than $1.2 billion at current prices, providing substantial support for stock volatility and reflecting the significant impact of the active Bitcoin market on the company's financial health.
- Earnings Release Announcement: The company announced it will release its Q4 and full-year financial results on February 24, with investors eagerly anticipating the implications of its transition from a Bitcoin miner to a data center and AI infrastructure player, which could positively affect future profitability.
- Land Purchase Agreement: Riot has entered into a land purchase and lease agreement for approximately 200 acres in Texas with AMD, which will utilize the land for its high-performance computing needs, potentially enhancing Riot's long-term earnings power, especially if forward earnings and EBITDA guidance improve in the upcoming financial commentary.
- Market Optimism: Despite the recent weakness in AI-related stocks, investors are taking a relatively bullish view of Riot, as evidenced by a 5.3% increase in stock price over the past five trading days, indicating confidence in the company's future developments.
See More
Surge in AI Infrastructure Spending
- Surge in Market Spending: Five companies have committed to spending $700 billion on AI infrastructure in 2023, with projections of data center capital expenditures reaching $1.4 trillion by 2030, indicating a strong investment appetite for AI technologies that could drive stock prices higher.
- Nvidia's Market Dominance: Nvidia holds approximately 90% market share in the GPU space, leveraging its early promotion of the CUDA software platform to become the dominant player in AI model training, which is expected to sustain its competitive edge in the market.
- Growth Opportunities for AMD: While AMD may not surpass Nvidia, capturing a share in the AI inference market could significantly enhance its market position, especially with a multi-year deal with OpenAI valued at around $200 billion, further solidifying its role in the AI sector.
- Advantage of CPU and GPU Integration: AMD's leadership in the data center CPU market, combined with its ability to integrate GPUs and CPUs, may provide a competitive advantage for future growth, particularly against the backdrop of surging AI infrastructure spending.
See More
Surge in AI Infrastructure Spending
- Market Spending Forecast: Five companies are projected to spend $700 billion on AI infrastructure this year, indicating a strong investment appetite for AI technologies, which is expected to drive rapid growth in the related chip market.
- Nvidia's Market Dominance: Nvidia holds approximately 90% market share in the GPU space, leveraging its early development of the CUDA software platform to become the leader in AI model training, and is poised to maintain this dominance in the foreseeable future.
- AMD's Growth Potential: While AMD may not surpass Nvidia in the GPU market, its multi-year deal with OpenAI, potentially worth around $200 billion, positions it well to capitalize on the rapidly expanding AI inference market.
- Investment Recommendation: Analysts suggest that despite Nvidia's market leadership, AMD's smaller AI revenue base and its leadership in data center CPUs present greater growth potential, making it a stock worth considering for investors.
See More
Riot Platforms Stock Surges 5.3% Amid Key AMD Deal
- Stock Surge Drivers: Riot Platforms' stock surged 5.3% this week, primarily driven by a land purchase and lease agreement with AMD, which will support AMD's high-performance computing needs, thereby enhancing market expectations for Riot's long-term earnings potential.
- Bitcoin Holdings Impact: Riot currently holds over 18,000 Bitcoins, valued at more than $1.2 billion at current prices, providing strong support for the company's stock price, especially amid Bitcoin's price volatility.
- Upcoming Earnings Report: The company is set to release its Q4 and full-year financial results on February 24, with investors keenly watching this report to assess the implications of Riot's transition from a Bitcoin miner to a data center and AI infrastructure player.
- Market Outlook: Despite the weak performance of AI-related stocks, analysts generally view Riot's transition as potentially positive, particularly given Bitcoin's strong performance, which may attract more investor interest.
See More
Nvidia Set to Report Strong Earnings with Promising Guidance
- China Market Recovery: Following the Trump administration's ban on Nvidia chip exports to China in April 2025, Nvidia is expected to resume exports, and if first-quarter revenue expectations reach $8 billion, it could lead to unexpected growth, significantly boosting market confidence.
- Surge in AI Giants' Investment: Major clients of Nvidia, including Alphabet, Amazon, and Meta, have announced capital expenditure plans for 2026, with expected spending of $175 billion to $185 billion, $200 billion, and $115 billion to $135 billion respectively, which will drive demand for Nvidia's chips and further solidify its market position.
- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
- Attractive Stock Valuation: While Nvidia's stock is often deemed expensive, its forward P/E ratio of less than 25 times is near its lowest level in three years, and a projected 20% price increase would bring it to a more reasonable 30 times forward earnings, making it a prime buying opportunity now.
See More
AMD Data Center Revenue Accelerates Growth
- Data Center Revenue Growth: AMD's data center revenue increased by 39% year-over-year in Q4 2025, a significant acceleration from 22% in Q3, indicating the company's recovery potential in this area, although the overall growth rate remains below the management's target of 60%.
- Market Share and Competition: AMD's stock rose approximately 60% in 2025, but experienced a pullback after the Q4 earnings announcement, with the current P/E ratio dropping from nearly 40 to 31, reflecting a market reassessment of its valuation, especially compared to rival Nvidia, which trades at a P/E of 24.
- Chinese Market Recovery: With the Trump administration allowing exports to China, AMD's sales are starting to rebound, a trend expected to significantly boost revenue throughout 2026 and beyond, further driving growth in its data center business.
- Long-Term Growth Outlook: AMD's five-year guidance released in November projected a 60% CAGR for the data center division and a 35% overall CAGR for the company, and while Q4 slightly missed these projections, it still shows strong progress toward these goals, with analysts expecting revenue growth of 34% and 37% for 2026 and 2027, respectively.
See More
Riot Platforms Stock Rises Amid Earnings Anticipation
- Bitcoin Holdings: Riot Platforms currently holds over 18,000 Bitcoins, valued at more than $1.2 billion at current prices, providing substantial support for stock volatility and reflecting the significant impact of the active Bitcoin market on the company's financial health.
- Earnings Release Announcement: The company announced it will release its Q4 and full-year financial results on February 24, with investors eagerly anticipating the implications of its transition from a Bitcoin miner to a data center and AI infrastructure player, which could positively affect future profitability.
- Land Purchase Agreement: Riot has entered into a land purchase and lease agreement for approximately 200 acres in Texas with AMD, which will utilize the land for its high-performance computing needs, potentially enhancing Riot's long-term earnings power, especially if forward earnings and EBITDA guidance improve in the upcoming financial commentary.
- Market Optimism: Despite the recent weakness in AI-related stocks, investors are taking a relatively bullish view of Riot, as evidenced by a 5.3% increase in stock price over the past five trading days, indicating confidence in the company's future developments.
See More
Surge in AI Infrastructure Spending
- Surge in Market Spending: Five companies have committed to spending $700 billion on AI infrastructure in 2023, with projections of data center capital expenditures reaching $1.4 trillion by 2030, indicating a strong investment appetite for AI technologies that could drive stock prices higher.
- Nvidia's Market Dominance: Nvidia holds approximately 90% market share in the GPU space, leveraging its early promotion of the CUDA software platform to become the dominant player in AI model training, which is expected to sustain its competitive edge in the market.
- Growth Opportunities for AMD: While AMD may not surpass Nvidia, capturing a share in the AI inference market could significantly enhance its market position, especially with a multi-year deal with OpenAI valued at around $200 billion, further solidifying its role in the AI sector.
- Advantage of CPU and GPU Integration: AMD's leadership in the data center CPU market, combined with its ability to integrate GPUs and CPUs, may provide a competitive advantage for future growth, particularly against the backdrop of surging AI infrastructure spending.
See More
Surge in AI Infrastructure Spending
- Market Spending Forecast: Five companies are projected to spend $700 billion on AI infrastructure this year, indicating a strong investment appetite for AI technologies, which is expected to drive rapid growth in the related chip market.
- Nvidia's Market Dominance: Nvidia holds approximately 90% market share in the GPU space, leveraging its early development of the CUDA software platform to become the leader in AI model training, and is poised to maintain this dominance in the foreseeable future.
- AMD's Growth Potential: While AMD may not surpass Nvidia in the GPU market, its multi-year deal with OpenAI, potentially worth around $200 billion, positions it well to capitalize on the rapidly expanding AI inference market.
- Investment Recommendation: Analysts suggest that despite Nvidia's market leadership, AMD's smaller AI revenue base and its leadership in data center CPUs present greater growth potential, making it a stock worth considering for investors.
See More
Riot Platforms Stock Surges 5.3% Amid Key AMD Deal
- Stock Surge Drivers: Riot Platforms' stock surged 5.3% this week, primarily driven by a land purchase and lease agreement with AMD, which will support AMD's high-performance computing needs, thereby enhancing market expectations for Riot's long-term earnings potential.
- Bitcoin Holdings Impact: Riot currently holds over 18,000 Bitcoins, valued at more than $1.2 billion at current prices, providing strong support for the company's stock price, especially amid Bitcoin's price volatility.
- Upcoming Earnings Report: The company is set to release its Q4 and full-year financial results on February 24, with investors keenly watching this report to assess the implications of Riot's transition from a Bitcoin miner to a data center and AI infrastructure player.
- Market Outlook: Despite the weak performance of AI-related stocks, analysts generally view Riot's transition as potentially positive, particularly given Bitcoin's strong performance, which may attract more investor interest.
See More
Nvidia Set to Report Strong Earnings with Promising Guidance
- China Market Recovery: Following the Trump administration's ban on Nvidia chip exports to China in April 2025, Nvidia is expected to resume exports, and if first-quarter revenue expectations reach $8 billion, it could lead to unexpected growth, significantly boosting market confidence.
- Surge in AI Giants' Investment: Major clients of Nvidia, including Alphabet, Amazon, and Meta, have announced capital expenditure plans for 2026, with expected spending of $175 billion to $185 billion, $200 billion, and $115 billion to $135 billion respectively, which will drive demand for Nvidia's chips and further solidify its market position.
- New Architecture Driving Growth: Nvidia's upcoming Rubin chip architecture offers significant efficiency improvements over the previous Blackwell generation, requiring only one Rubin chip for every four Blackwell chips for AI model training, which will encourage more companies to upgrade their GPUs, thus driving sustained growth for Nvidia.
- Attractive Stock Valuation: While Nvidia's stock is often deemed expensive, its forward P/E ratio of less than 25 times is near its lowest level in three years, and a projected 20% price increase would bring it to a more reasonable 30 times forward earnings, making it a prime buying opportunity now.
See More
