- Goldman Sachs raises AMD price target to $640 from $450, reiterating a Buy rating.
- Analysts cite strong AI and data center momentum as key drivers for the upgrade.
- The revision reflects growing confidence in AMD's competitive positioning against Nvidia.
Bullish Signals for AMD
Goldman Sachs has lifted its price target for Advanced Micro Devices Inc. to $640 from $450, while maintaining a Buy rating, according to a note released Thursday. The upgrade underscores the bank's optimism about AMD's trajectory in the AI and data center markets, where it is gaining ground against rivals like Nvidia.
“We see AMD as a key beneficiary of the expanding AI infrastructure buildout, with its MI300 series accelerators gaining traction among hyperscalers,” the analysts wrote. The new target implies an upside of roughly 20% from current trading levels.
The move aligns with a broader wave of analyst upgrades for AMD, as the chipmaker capitalizes on surging demand for AI compute power. Revenue from its data center segment has more than doubled year-over-year, fueled by sales of its Instinct GPUs and EPYC server CPUs.
Market Context and Competition
AMD’s stock has rallied nearly 30% this year, outpacing the Philadelphia Semiconductor Index. However, it still trades at a discount to Nvidia on a price-to-earnings basis, a gap Goldman expects to narrow as AMD proves its AI capabilities.
“The competitive landscape is evolving, but AMD’s product roadmap and customer engagements give us confidence in sustained market share gains,” the analysts said, noting partnerships with major cloud providers.
What's Next
Investors will focus on AMD’s upcoming earnings, where management is expected to provide guidance on AI GPU shipments and data center revenue. The company is also set to unveil its next-generation MI400 accelerators later this year, which could further bolster its position.
Correction: An earlier version of this article misstated the previous price target. It is $450, not $475.