Three Artificial Intelligence (AI) Shares Predicted to Gain Between 60% and 194% by Certain Wall Street Experts in the Year 2025
In the current boom, the big earners have been tech companies heavily invested in artificial intelligence (AI). Despite some stocks reaching eye-watering valuations, there's still room for growth in this sector. Look no further than these three AI stocks, as per select Wall Street analysts, with potential upside of up to 194% through 2025.
1. Micron Technology (MU) - 194% expected upside
Micron, a renowned semiconductor manufacturer, has seen success with its high-bandwidth memory (HBM) chips, vital components for AI servers. The Rosenblatt analysts have a $250 price target on Micron shares, which equates to a whopping 194% upside on the stock's current price. However, investment challenges loom, such as the cyclicality of Micron's consumer-focused chips.
The company's data center business has soared, growing by 400% in the first quarter, driving the majority of its revenue. This trend is expected to continue in the coming years, propelling the stock to new heights. Micron currently trades at a meager enterprise value-to-revenue multiple of 3.6, providing ample space for expansion. Analysts foresee significant revenue growth and profit improvements in 2025, justifying the stock's perceived bargain value.
2. Advanced Micro Devices (AMD) - 106% expected upside
Rosenblatt analysts are also bullish on AMD, a semiconductor company known for its GPUs and AI accelerator chips. Their price target for AMD shares is a promising $250, suggesting a 106% upside on current prices. AMD is a strong second choice in the market and a viable alternative to leading chip supplier Nvidia. With Nvidia's AI customers looking to diversify their risks, AMD's presence in the market is assured.
AMD's market thrived in 2021 due to spiking GPU demand, with data center revenues surging by 122%. The company continues to advance its AI chip technology and attract new customers willing to utilize AMD's products in their data centers. AMD is planning to launch new GPUs at a rapid pace and catch up to Nvidia's competitive lead, ensuring steady revenue growth in the coming years.
3. Dell (DELL) - 60% expected upside
Dell, best known for its PCs, is quickly making a name for itself in the server market. The tech giant's AI-optimized servers are in high demand, with revenues from Infrastructure Solutions segment up by a staggering 58% for the quarter. Loop Capital has a $185 price target for Dell, implying an optimistic anticipated upside of 60%.
This bullish forecast comes amid Dell's mixed Q3 2021 results, where traditional server and PC sales struggled. Management expects a PC and server market refresh in 2022, driving growth in the company's lagging segments. Meanwhile, the AI and cloud computing segments remain robust. Dell's $3.6 billion worth of AI-server orders in the last quarter is a testament to a promising future, ensuring steady revenue growth through at least 2026.
Despite the current market's record valuations, these three AI stocks could be worth taking a closer look at, especially if you're willing to bet on the continued growth of artificial intelligence in the years to come.
- In the prediction for 2025, HBM chip manufacturer Micron Technology (MU) is anticipated to see a 194% increase in stock value, according to Rosenblatt analysts, who have set a $250 price target.
- Despite Nvidia's dominance in the AI chip market, Advanced Micro Devices (AMD) is seen as a strong alternative due to its GPUs and AI accelerator chips, with a potential 106% upside to its current price according to Rosenblatt's $250 price target.
- Technology giant Dell (DELL) is making waves in the server market with its AI-optimized servers, showing a 58% revenue increase in its Infrastructure Solutions segment. Loop Capital has a price target of $185 for Dell, indicating a potential 60% upside, despite mixed Q3 2021 results.
- As tech companies continue to invest in artificial intelligence, Wall Street analysts are optimistic about the growth prospects of Micron Technology, Advanced Micro Devices, and Dell, Three AI stocks tipped to see significant gains in the coming years, with potential upside of up to 194%, 106%, and 60% respectively. (Note: This sentence is a summary of the first three sentences about the stocks and their potential upside)