Key Stats for AMD Stock
- YTD price change for AMD stock: 112%
- $AMD Share Price as of May. 8: $455
- 52-Week High: $456
- $AMD Stock Price Target: $445
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What Happened?
Goldman Sachs just upgraded Advanced Micro Devices (AMD) stock to “Buy” and raised its 12-month price target to $450, up from $240.
The firm’s main argument is straightforward: agentic AI is coming, and AMD is one of the biggest winners.
As AI shifts from generating responses to actually completing tasks — such as browsing, coding, and managing workflows — it requires much more CPU power to do so.
Goldman sees AMD’s server CPU business as a direct beneficiary of this trend. Enterprises run mostly on x86 infrastructure, and AMD’s chips are built for exactly that.
Moreover, Goldman is bullish on AMD stock due to its growing data center GPU business. The firm models AMD’s GPU units to grow 66% in 2026 and nearly double again in 2027.
A big part of that is a 6-gigawatt deployment deal with Meta — one Goldman calls out as a major revenue driver going forward.
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What the Market Is Telling Us About AMD Stock
Goldman’s upgrade reflects a view that AMD stock has been underappreciated relative to where its earnings are headed.
The firm’s EPS estimates for 2027 and 2028 are roughly 20% above Wall Street consensus — a gap that’s hard to ignore.
Goldman believes positive estimate revisions will be the main driver of AMD stock performance over the next 6 to 8 quarters.
Their price target is built on a 30x P/E multiple applied to a normalized EPS estimate of $15. In a bull scenario, they see the stock hitting $594. In a bear case, $176.
It’s worth noting that Goldman still prefers Nvidia and Broadcom as their top picks in semiconductors. But they’re now saying AMD presents a compelling entry point — especially for investors who want exposure to the agentic AI wave through a stock that hasn’t fully priced it in yet.
For AMD stockholders, the key risks to watch are slower-than-expected AI adoption, any hiccups in the Meta GPU deployment, and ARM-based chips taking more enterprise market share than expected.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
