Goldman Sachs Upgrades AMD to Buy, $450 Price Target

Goldman Sachs analyst James Schneider upgraded AMD (NASDAQ: AMD) from Neutral to Buy with a price target of $450.00 (from $240.00).

“We upgrade AMD to Buy with a 12-month price target of $450 (27% upside) given tailwinds to its server CPU business we expect from agentic AI, as well as upside in datacenter GPUs in 2027 and beyond.

First, we expect proliferation of agentic AI in enterprise and consumer workloads to act as a medium-term tailwind to the server CPU TAM, benefiting AMD.

We expect AMD to be an outsized beneficiary of enterprise agentic AI adoption, where we see x86 having staying power as agents interact with enterprises’ exiting x86 infrastructure.

Second, we see upside to AMD’s datacenter GPU revenue in 2027 and beyond.

We are most bullish on the 6 GW deployment opportunity at Meta, and we expect stable share at Microsoft – although we await more visibility into OpenAI’s deployments.

All in, our 2027/28 EPS estimates are ~20% above the Street (VA), and we expect stock price outperformance to be driven by positive estimate revisions.

We continue to prefer Buy-rated Broadcom and Nvidia on a relative basis, but we believe AMD presents a compelling opportunity for exposure to agentic AI adoption via server CPUs.”

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