Advanced Micro Devices (NASDAQ:AMD) has rightfully earned its place as one of the world’s foremost artificial intelligence chip makers. Despite this achievement, AMD, unfortunately, has not been acknowledged as a member of the elite “Magnificent Seven” or “Mag-7.” However, this oversight does not overshadow our bright outlook for AMD stock, which we confidently grade as an “A.”

In a notable development, AMD has increased its full-year 2024 MI300 AI processor revenue guidance from the previous $2 billion to the current $3.5 billion. Clearly, this upward revision demonstrates AMD’s unwavering confidence in its ability to monetize its AI-compatible hardware. For investors seeking the top-tier AI-tech standouts for their portfolio this year, AMD indisputably deserves a prime spot on the watch list.

Catalyzing the Next Leg Up in AMD Stock

What catalyst could bring the personal computer industry back to life? And what will set the next wave of smartphone models apart from their predecessors? The answer, as anticipated, lies in AI features and functionalities.

The implications for AMD, as a forerunner in offering AI-compatible chips, are substantial. With the next generation of PCs and mobile handsets expected to demand powerful AI processors, AMD is poised to meet these needs.

According to research by Gartner, around 240 million generative AI smartphones are projected to be shipped in 2024. Additionally, the firm foresees that vendors will dispatch 54.5 million AI PCs this year. Furthermore, IDC estimates that AI-powered PCs will account for nearly 60% of all PCs shipped by 2027. IDC specifically identifies AMD as one of the companies that has announced future chips for the category of next-generation AI PCs.

AMD Quietly Unleashes a Potential Game-Changer

Aside from the anticipated surge in AI-enabled smartphones and PCs, AMD has launched a relatively lesser-known product line called AMD Embedded+.

This seemingly low-profile news could emerge as a game-changing development throughout 2024. AMD Embedded+ is the company’s latest processor-architecture solution for AI applications. In essence, AMD Embedded+ is an architecture line optimized for a wide range of AI applications, including medical, industrial, and automotive uses. Chetan Khona, senior director of Industrial, Vision, Healthcare and Sciences Markets at AMD, elaborated on the significance of this product:

“In industrial and medical applications, many decisions need to happen in milliseconds. Embedded+ maximizes the value of partner and customer data, with energy efficiency and performant computing that enables them to focus in turn on addressing their customer and market needs.”

Despite the technical nature of this announcement, investors should not overlook the significance of AMD Embedded+. This product appears to be another benchmark offering for AMD and a potential long-term revenue generator.

AMD Stock Outlook: Expect ‘Magnificent’ Results

While some may debate whether Tesla should maintain its position in the “Magnificent Seven,” a more worthwhile topic is AMD’s magnificence as an AI-hardware leader and innovator. There is no need to dwell on which companies belong to an exclusive club. Our outlook for AMD stock remains bullish due to the company’s exceptional AI-compatible products. The stock unequivocally deserves an “A” grade and is appropriate for many investors’ portfolios.

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.