[UBS names AMD, Dell, Oracle as the best tech stocks for year-end]

AMD is UBS’ top pick in the semiconductor and semiconductor capital equipment sectors, as the bank likes AMD’s GPU roadmap.

Its GPU products are considered “competitive” with Nvidia (NVDA) due to superior memory bandwidth and a push for full-system solutions, UBS said.

“We expect data centers to account for [roughly] 70% of [operating profits] next year, and AMD has strong momentum in both GPUs and CPUs.”

Dell is the firm’s top pick in the hardware and electronics manufacturing services sectors, as the firm believes Dell’s emerging strength in AI-focused server and PC refresh cycles will be better supported by pricing.

Dell recently reported second-quarter results that beat expectations.

Oracle is the firm's top pick in the big software space because the firm believes it can sustain cloud infrastructure growth of 50% or more, thanks to increased revenue from artificial intelligence, the addition of key customers such as Uber and OpenAI, and database migration to Azure.