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Predictive Analysis Indicates Potential Nasdaq Upsurge in 2025: Two Artificial Intelligence (AI) Stocks Adjudged to Recover and Surge by 25% to 40%, as Per Wall Street Analysts
Technology stocks soared on the stock market in 2024, with the tech-heavy Nasdaq Composite index surging an impressive 28.6%, following a 43% jump in 2023. Historical trends suggest the Nasdaq could keep climbing in 2025, with a 19% average gain in years following a 30%-plus overall gain, and an additional 17% return following a year of 20% or more gains.
Wall Street is optimistic about the tech sector entering 2025, fueled by investments in artificial intelligence (AI), a robust US economy, and potential Federal Reserve interest rate cuts. Under these circumstances, it's worth exploring the prospects of two AI-focused stocks: Advanced Micro Devices (AMD) and Dell Technologies.
Let's dive into AMD first. The stock has plummeted 39% from its all-time high in March 2024, despite improved demand for its AI chips for data centers and PCs. While AMD isn't as dominant as Nvidia in the data center GPU market, its growth potential is attractive, especially considering the consensus price target of $183 (a 41% jump from current levels) and an 80% buy recommendation rate from analysts.
Strong demand for personal computers is expected to boost AMD's client processor business, while continued growth in data center GPU sales should capitalize on improved supply chain efficiency. Analysts predict a 54% increase in AMD's earnings to $5.13 per share in 2025, setting it up for a promising year.
Dell Technologies is another AI stock that has taken a hit, losing 30% since its all-time high in May 2024. However, its Infrastructure Solutions Group (ISG) segment reported a 34% YoY quarterly revenue increase, fueled by a booming AI server market. Analysts have set a 12-month price target of $155 for Dell, representing a 24% leap from its current price, and have recommended buying the stock with 86% confidence.
Dell's ISG revenue reached $11.4 billion in Q3, driven by AI server demand, and could benefit further from AI-powered PC growth in 2025. With its growing AI server order pipeline and a projected annual growth rate of 27% for the global AI server market, Dell looks poised to capitalize on the burgeoning AI and data center markets.
Both AMD and Dell are well-positioned for growth in 2025, given their AI and data center focus, strong financial positions, and robust market positions. However, AMD faces competition from Nvidia in the AI space. Investors should consider these trends and stocks as part of their broader tech strategy in the promising AI and data center markets.
- In light of the Nasdaq's projected climb in 2025, investors might find opportunity in investing in AI-focused stocks like Advanced Micro Devices (AMD) and Dell Technologies.
- Despite AMD's 39% drop from its 2024 all-time high, its growth potential, fueled by improved demand for AI chips, makes it an attractive investment option for 2025.
- With a potential for a 54% increase in earnings and a consensus price target of $183, investing in AMD could yield significant returns in 2025.
- Dell Technologies, having lost 30% since its 2024 all-time high, could improve its position by capitalizing on the booming AI server market and AI-powered PC growth in 2025.