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Investing.com - Goldman Sachs has reiterated its Neutral rating on AMD (NASDAQ:AMD) with a price target of $210.00 following the company’s 2025 Financial Analyst Day in New York. This target sits notably below AMD’s current trading price of $237.52, aligning with InvestingPro data suggesting the stock is currently overvalued compared to its Fair Value.
The investment bank noted that AMD presented long-term financial targets exceeding Street expectations, primarily driven by anticipated strong growth in the Datacenter segment across both AI GPUs and CPUs. This optimism is supported by AMD’s impressive 31.83% revenue growth over the last twelve months, according to InvestingPro data.
While Goldman Sachs believes AMD’s financial targets are achievable, it highlighted that these goals assume significant gross margin and operating expense leverage, along with much greater scale that depends heavily on the strong ramp of a few key customers, particularly OpenAI. With a current P/E ratio of 127.75, AMD is trading at a high earnings multiple relative to near-term growth expectations.
The firm acknowledged AMD has made strong progress on its Datacenter GPU roadmap and continues to build momentum in its core CPU business. Despite this progress, InvestingPro data shows AMD’s stock price movements remain quite volatile with a beta of 1.91, something investors should consider when evaluating the $386.69 billion market cap company.
Goldman Sachs maintained its Neutral stance on the stock due to concerns about the model’s reliance on the OpenAI deal, which is expected to be a material driver of AMD’s business, noting it could become more constructive with increased confidence in this revenue stream and execution timeline in coming quarters. The broader analyst consensus is more bullish at 1.57 (Buy), with price targets ranging from $134.20 to $380, reflecting the mixed sentiment around AMD’s ambitious growth strategy.
In other recent news, AMD has outlined ambitious growth targets at its Financial Analyst Day, projecting a compound annual revenue growth rate of over 35% and non-GAAP earnings per share surpassing $20 within the next three to five years. The company anticipates its data center business to grow at more than 60% CAGR, fueled by its AMD Instinct MI350 Series GPUs, and plans to launch new Helios systems with MI450 Series GPUs in 2026. TD Cowen has raised AMD’s price target to $290 from $270, maintaining a Buy rating, citing the company’s progress and a significant data center GPU inflection point.
Goldman Sachs has maintained a Neutral rating with a $210 price target, noting AMD’s long-term financial targets exceeded Wall Street expectations, driven by growth in the datacenter segment. Deutsche Bank also reiterated its Hold rating with a $250 price target after AMD significantly raised key financial metrics during its analyst meeting. Additionally, AMD has secured deals with companies like OpenAI to power AI models, as OpenAI expands its data center operations without seeking government guarantees. These developments reflect AMD’s strategic focus on expanding its leadership in data centers and AI technology.
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