Come on, Magnificent 7! AMD stock deserves attention now.

Advanced Micro Devices (NASDAQ:AMD) (commonly known simply as AMD) is one of the world’s largest and best-known artificial intelligence chip manufacturers in the 2020s. But for some reason, AMD is not designated as an elite member of the “Magnificent Seven” or “Mag-7.” However, this doesn’t change our stock outlook for AMD at all, and we still confidently assign the stock an ‘A’ grade.

In an eye-popping move, AMD has raised its full-year 2024 MI300 AI processor revenue guidance from $2 billion to now $3.5 billion. It’s clear that AMD’s management has tremendous confidence in its ability to monetize AI-compatible hardware. So if you want the best and brightest AI technology standouts in your portfolio this year, AMD should definitely be on your watch list.

This could fuel the next rally in AMD stock

What could revive the computer industry? And what will make the next wave of smartphones different from previous models? As you might expect, the answer has to do with AI features and capabilities.

This is significant for AMD, which has always been at the forefront of providing AI-compatible chips. If the next wave of PCs and mobile devices requires powerful AI processors, you can count on AMD to be there for it.

Research from two different companies shows strong growth in these markets. Research firm Gartner predicts that smartphone manufacturers will ship approximately 240 million generated AI smartphones in 2024. Additionally, the company expects vendors to ship 54.5 million AI PCs this year.

In addition, research firm IDC says that AI-equipped PCs Barons) “will account for nearly 60% of all PCs shipped by 2027,” increasing from an estimated 50 million this year to 167 million in 2027. IDC specifically identified AMD as one of the companies that “unveiled chips of the future” in the “next generation” AI PC category.

AMD quietly unleashes potential game changer

In addition to the expected proliferation of AI-enabled smartphones and PCs, there’s another positive catalyst here for AMD stock. You may not have heard much about this news, but AMD just launched a product line called AMD Embedded+.

This is relatively quiet news right now, but it could lead to big changes throughout 2024. AMD Embedded+ is the company’s new processor architecture solution for AI applications. Simply put, AMD Embedded+ is an architecture line optimized for a variety of AI applications.

Although the press release specifies “medical, industrial, and automotive applications,” it’s easy to imagine AMD Embedded+ being effectively deployed in other areas as well. Chetan Khona, AMD’s senior director of industrial, vision, healthcare and scientific markets, explained the need for this type of product:

“Industrial and medical applications require many decisions to be made within milliseconds. With energy-efficient and high-performance computing, Embedded+ maximizes the value of partner and customer data to meet customer and market needs. This will allow us to focus on responding to the situation.”

Some investors will definitely ignore this news item because it contains technical terms. This is a shame because AMD Embedded+ is another “gold standard” product for AMD and could be a long-term revenue stream.

AMD stock outlook: prepare for a “great” outcome

Some people may spend their time discussing the following: tesla (NASDAQ:TSLA) should be removed from The Magnificent Seven. A good topic would be to discuss AMD’s impressive credentials as a leader and innovator in AI hardware.

Don’t waste your time obsessing over which companies are part of the exclusive club. Our outlook for AMD stock is bullish as the company’s AI-compatible products are top-notch. This stock easily earns an ‘A’ grade and is a good fit for many investors’ portfolio strategies.

On the date of publication, neither Louis Navellier nor the InvestorPlace research staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.