As the stock market remains choppy, long-term investors looking for growth opportunities may want to consider Advanced Micro Devices (NASDAQ: AMD) and Uber Technologies (NYSE: UBER). Both companies recently reported strong financial results and have ambitious expansion plans that could drive substantial upside over the next year.
AMD: Data Center Growth Could Unlock a 52% Upside
Despite delivering solid Q4 earnings, AMD’s stock dipped as its data center sales missed Wall Street estimates. However, the market reaction may be overly pessimistic, given the company’s long-term growth potential.
Q4 Financial Highlights
- Total revenue grew 24% year-over-year (YoY) to $7.6 billion.
- Non-GAAP net income surged 42% to $1.09 per diluted share.
- CEO Lisa Su announced that AMD’s data center AI revenue is expected to grow from $5 billion in 2024 to “tens of billions” annually in the coming years.
Market Opportunity
Analysts at Argus Research remain bullish on AMD’s future, citing:
- Share gains in both client and data center CPUs.
- Market leadership in console gaming.
- A strengthened embedded business following its Xilinx acquisition.
Wall Street expects AMD’s earnings to increase 40% in 2025, making its current valuation of 32x earnings look attractive. If AMD’s data center GPU revenue accelerates in the second half of 2025, as Lisa Su predicts, the stock could rally by 52%, according to Argus analyst Jim Kelleher.
For patient investors, now could be an opportune time to initiate or add to their AMD position, as the company continues to take CPU share from Intel and potentially encroach on Nvidia’s GPU dominance.
Uber: 55% Upside on the Horizon With AV Potential
Uber Technologies is cementing its position as the global leader in ride-sharing and food delivery, with significant upside potential as it explores autonomous vehicle (AV) technology.
Q4 Financial Highlights
- Revenue rose 20% YoY to $12 billion, driven by strong growth in mobility and delivery segments.
- Adjusted EBITDA climbed 44% to $1.8 billion.
- The company achieved a higher take rate in both business segments, boosting profitability.
Key Growth Catalysts
Uber’s dual-service platform creates cost efficiencies through cross-selling opportunities, while its massive scale strengthens its network effect, leading to higher user engagement.
On the Q4 earnings call, CEO Dara Khosrowshahi highlighted Uber’s AV ambitions, calling it a $1 trillion opportunity for ride-sharing platforms. With partnerships like its expanding collaboration with Alphabet’s Waymo, Uber is positioned to deliver lower operational costs and faster go-to-market capabilities than its peers.
Analyst Outlook
Mark Mahaney at Evercore expects Uber’s stock to gain 55% over the next year, citing the company’s strong fundamentals and expanding AV partnerships. With Uber’s current valuation of 17x earnings, the stock appears undervalued, making it an appealing buy for long-term investors.
Bottom Line
Both AMD and Uber offer compelling growth opportunities in 2025:
- AMD is riding the wave of AI and data center demand, with the potential to outperform market expectations in the second half of the year.
- Uber is transforming its ride-sharing and delivery platform into a tech powerhouse, with autonomous vehicles presenting a massive new revenue stream.
For investors with a long-term horizon, both stocks offer significant upside potential and could deliver market-beating returns in the year ahead.
