Goldman Sachs has reiterated a Neutral rating on Advanced Micro Devices, assigning a $210.00 price target that sits at the low end of the analyst range of $210 to $380. The firm flagged valuation and operating-cost dynamics as central to its view even as AMD reported quarterly results that came in ahead of forecasts.
Goldman Sachs noted that, despite robust revenue and guidance underpinned by outperformance in the Datacenter business, the company issued operating expense guidance that was materially higher than the bank expected. That upward revision to expenses is the primary reason Goldman Sachs anticipates downside pressure on the stock in the near term, notwithstanding the positive revenue drivers.
The bank pointed to a series of bullish indicators that had already been factored into investor positioning ahead of the earnings release. Those include optimism around broad market strength, share gains in server central processing units, continued investments and buildouts in AI infrastructure, and expectations for a meaningful ramp of the MI455X in the second half of the year. Supporting this constructive view, AMD has delivered 31.83% revenue growth over the last twelve months and an impressive 102.6% total return over the past year, while trading at a premium valuation with a price-to-earnings ratio of 126.66.
Goldman Sachs highlighted AMD’s elevated volatility - a five-year Beta of 1.95 - as another factor suggesting the potential for sizable stock price moves in either direction. The bank expects the Datacenter segment to maintain momentum into 2026, driven by server market share gains and the ramp of the MI400 series products. However, it cautioned that near-term operating leverage may be constrained by the company’s sizable software and systems investments associated with expanding AI infrastructure.
Because of those dynamics - limited immediate operating leverage and likely high customer concentration in the GPU datacenter business - Goldman Sachs retained a Neutral stance on AMD. The firm indicated it could adopt a more favorable view if future quarters provide greater confidence in the durability of the revenue stream and the timeline for execution.
From a valuation perspective, InvestingPro analysis referenced by market observers characterizes AMD as marginally overvalued at current levels, with a market capitalization of $394.17 billion. The stock’s premium multiple and elevated volatility were highlighted as considerations for investors weighing exposure to the company.
AMD’s reported fourth-quarter 2025 results underpin much of the current debate. The company posted earnings per share of $1.53, above the $1.32 analysts had forecast, and reported revenue of $10.3 billion, beating expectations of $9.64 billion. The Datacenter segment was a major driver, increasing 24% sequentially and 39% year-over-year, according to the company’s reported figures.
Market participants have reacted in varied ways to the earnings beat. For example, KeyBanc Capital Markets raised its price target on AMD to $300 from $270 while maintaining an Overweight rating, reflecting a more bullish interpretation of the company’s momentum and prospects relative to Goldman Sachs’ more measured stance.
In sum, Goldman Sachs sees a mixed outlook for AMD: strong demand dynamics and sizable growth in Datacenter revenue set against elevated expense guidance and concentrated customer exposure in GPU datacenter sales. The bank’s Neutral rating reflects that balance, and it signals potential for a more constructive view if subsequent quarters deliver clearer evidence on revenue stability and execution timelines.
Contextual note: The analysis above relies on firm guidance, reported quarterly results, valuation metrics, and analyst positioning reported in market data. Observers looking for deeper, visualized company research may consult specialist equity research resources for additional charts and granular financial breakdowns.