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Investing.com - Goldman Sachs has maintained its Neutral rating and $150.00 price target on Advanced Micro Devices (NASDAQ:AMD) following the company’s quarterly results. According to InvestingPro data, AMD currently trades at $174.31, near its 52-week high of $182.50, with a market capitalization of $282.63 billion and a P/E ratio of 127.12.
The investment bank expects AMD stock to remain range-bound despite the company reporting a strong quarter with guidance that exceeded market expectations. This outlook is tempered by high investor expectations and recent stock outperformance leading into the earnings report. InvestingPro analysis indicates AMD maintains a GOOD overall financial health score, with particularly strong momentum and cash flow metrics. Get access to 18 additional exclusive ProTips and comprehensive financial analysis through InvestingPro.
Goldman Sachs believes AMD’s stock performance will continue to be primarily influenced by Data Center GPU revenue projections for 2026. The firm expects the strong quarterly results to sustain optimism around a significant ramp in the second half of 2025 and into 2026.
The bank’s analysis suggests AMD will generate approximately $7 billion in Data Center GPU revenue in 2025, with realistic estimates for 2026 in the $10-11 billion range. However, Goldman Sachs notes that investor expectations appear to exceed these projections.
While Goldman Sachs remains constructive on AMD’s ability to gain significant market share in PC and enterprise server markets in the near term, it expresses more caution regarding the company’s ability to scale its Datacenter GPU business over time. The firm also believes AMD’s earnings potential may be constrained by the substantial operational expense increases needed to support its AI software and systems initiatives. With revenue growth of 21.71% in the last twelve months and a projected 24% growth for FY2025, AMD shows strong momentum. Discover detailed growth projections and 1,400+ comprehensive Pro Research Reports available on InvestingPro.
In other recent news, Advanced Micro Devices Inc. (AMD) reported a 32% year-over-year increase in revenue for the second quarter of 2025, reaching $7.7 billion. This surge was primarily driven by strong sales of its EPYC and Ryzen processors. Additionally, AMD provided optimistic guidance for the third quarter, projecting revenue of $8.7 billion. Following these results, Deutsche Bank (ETR:DBKGn) raised its price target for AMD to $150, maintaining a Hold rating, while Raymond (NSE:RYMD) James increased its target to $200, keeping an Outperform rating. Both firms highlighted the company’s performance in the Client and Gaming segments as key drivers of growth. AMD’s earnings per share met expectations at $0.48. Despite these positive developments, the stock saw a slight dip in aftermarket trading. The mixed financial metrics and broader tech market trends may have influenced this market reaction. These recent developments reflect the company’s ongoing momentum and investor interest.
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