List of AMD concept stocks worth investing in 2025: Focus on these five companies

As a key player in the global chip industry, AMD and its upstream and downstream supply chain companies have always attracted market attention. Although AMD itself experienced stock price fluctuations in 2024, AMD-related stocks in Taiwan performed remarkably well. Leading companies such as TSMC, Kinsus, and ShunSin saw gains of over 80% in the past year, with Kinsus in the cooling sector soaring over 120% driven by AI server demand. Traditional packaging and testing giants like ASE and KYEC also recorded returns ranging from 20% to 40%. As we enter 2025, with the ongoing global AI wave, the investment value of these AMD-related stocks warrants a reassessment.

Five AMD-Related Stocks: Who Will Be the Winners Next Year

TSMC: Solidified Leader in AI Chip Foundry

As the undisputed leader in chip manufacturing, TSMC plays a core role in the AMD ecosystem. The company’s November 2024 monthly revenue reached NT$276.1 billion, down 12.2% month-over-month, but still at a historic second-high level, indicating stable demand. Nomura Securities analysts believe that TSMC’s revenue from AI in 2025 will exceed 20%, ahead of previous expectations by three years, praising it as “the crown jewel of AI.” The target stock price is set at NT$1,400, reflecting market optimism about its prospects.

Revenue in the first two months of Q4 has already reached 70% of the full quarter forecast, making it highly likely to surpass the annual target. As demand for customized accelerators from NVIDIA and large cloud service providers continues to rise, TSMC’s foundry position will become even more unshakable.

KYEC: Global Testing Leader Riding the Wave

In the semiconductor supply chain, KYEC controls a critical testing segment. Its Q3 revenue reached NT$7.038 billion, up 12.9% year-over-year; net profit attributable was NT$2.478 billion, up 61%, with profit growth far exceeding revenue growth, reflecting significant operational efficiency improvements.

AI business continues to inject momentum, driving both revenue and gross margin higher. Industry analysts believe that the recovery of non-AI businesses needs further observation in the first half of 2025. Japanese foreign institutions give a neutral rating with a target price of NT$132, indicating cautious market sentiment toward its valuation.

ShunSin: Direct Beneficiary of Explosive Cooling Demand

With AI servers driving a surge in cooling system demand, ShunSin, focused on developing and manufacturing cooling fans, is entering an explosive growth period. The company was included in the MSCI Global Standard Index, with its stock reaching a record high of NT$1,625. October revenue hit NT$1.31 billion, a record high, up 26.21% year-over-year, with all four product lines maintaining growth.

The company is actively expanding capacity, planning to build the Daya Bay Plant 3, which is expected to increase capacity by 30%, leaving ample room for future order growth. Foreign institutional investors are optimistic about its prospects, maintaining a buy rating and raising the target price, reflecting a consensus on strong demand in the cooling sector.

Powertech: Advanced Packaging Becomes New Growth Driver

As a global leader in packaging and testing, Powertech’s consolidated revenue in November reached NT$52.933 billion, down 6.19% month-over-month due to seasonal factors. The company’s 2025 plan focuses on expanding advanced packaging capacity, which is expected to account for over 10% of operations, becoming a key driver for future gross margin improvement.

With demand for advanced packaging continuing to grow, Powertech is confident in achieving operational margin improvements through product mix optimization. The market remains optimistic about its long-term development prospects.

Kinsus: Connector Demand Riding the Wave

Kinsus specializes in connectors and structural components. From January to October 2024, its consolidated revenue reached NT$24.578 billion, up 23.08% year-over-year. October revenue hit NT$2.76 billion, a record high for the month, up 35.51%, indicating sustained strong demand.

The penetration of two new CPU server platforms is accelerating, and pre-holiday stocking has begun early, so Q4 operations are expected to outperform previous years. Hong Kong-based foreign investors maintain a buy rating with a target price of NT$1,900; Asian foreign investors have also raised their EPS forecasts for 2025 and 2026, upgrading their rating to outperform the market, optimistic about its prospects in AI servers.

AMD Earnings Shortfall Triggers Chain Reaction

AMD’s Q3 revenue was US$6.82 billion, up 18% year-over-year, slightly above analyst expectations, but its Q4 revenue guidance of US$7.5 billion was below the market expectation of US$7.55 billion. The full-year AI chip sales forecast also fell short, leading to a post-market stock price drop of over 7%.

The data center segment again broke through, with revenue up 122% YoY and 25% QoQ, accounting for 52% of total revenue; client computing revenue increased 29% YoY and 26% QoQ, showing strong performance; gaming and embedded segments, though still in a downturn, are showing signs of recovery. CEO Su Zifeng stated that the record high in Q3 was mainly driven by growth in EPYC and Instinct data center products, as well as strong demand for Ryzen PC processors.

By the end of the year, AMD’s stock price had fallen 8%. It peaked at $211 in early March but then declined about 35%, entering a correction phase. The market generally attributes this to intensified chip competition, slowing global demand, and excessive prior gains.

Why Are AMD-Related Stocks Resilient? An Independent Growth Logic Emerges

Despite AMD’s disappointing earnings impacting the market, stocks related to AI companies such as TSMC, Nanya, ShunSin, Unimicron, and Quanta experienced relatively mild declines. A key reason is that these companies are not solely dependent on AMD; their diversified customer base effectively disperses risk associated with any single vendor.

However, when Bank of America and Morgan Stanley lowered AMD’s target price, AMD-related stocks in Taiwan generally experienced adjustments. Companies like TSMC, Powertech, and KYEC all saw their stock prices decline on the same day, indicating that market sensitivity to AMD’s movements still exists.

This phenomenon reflects an important shift: over time, these AMD-related stocks are gradually establishing independent growth logic, no longer solely following AMD’s stock price, but instead being valued based on their own business prospects and industry trends.

Semiconductor Market Outlook for 2025: Multiple Positive Factors Converge

According to IDC, the global semiconductor market in 2025 is expected to grow 15% year-over-year driven by AI and high-performance computing demands, with memory chips potentially increasing over 24%, and non-memory segments expected to grow 13%.

In Taiwan’s stock market, 2025 is expected to continue its upward trend, although the growth rate may be less than 2024. Market institutions forecast the Taiwan stock index target to be about 1,000 points higher than the 2024 peak. Factors such as a stable global economy, sustained strong profits in the AI industry, a dovish interest rate cycle favorable to stocks, and ample liquidity create a favorable environment for AMD-related stocks benefiting from AI industry growth.

Overall, as the AI wave continues into 2025, Taiwanese semiconductor supply chain companies will continue to benefit. Investors should focus on core-competitiveness AMD-related stocks with high earnings visibility to seize investment opportunities brought by industry upgrades.