Goldman Sachs

Analysts: AMD to Outperform Despite Post‑Earnings Slide

Advanced Micro Devices reported Q2 adjusted earnings of $1.66 per share versus LSEG‑polled expectations of $1.62 and revenue of $11.54 billion versus consensus $11.28 billion. Despite the beat, AMD shares fell about 8% in premarket trading while the stock is up roughly 198% year‑to‑date as the company expands into AI‑focused server CPUs and datacenter GPUs and competes with Nvidia. Multiple Wall Street firms reiterated bullish ratings and raised price targets (Wells Fargo to $700; Bank of America $620; Goldman Sachs $640; UBS $730; Barclays $665; Citi $575), while a few firms expressed more cautious stances (Morgan Stanley equal weight $465; JPMorgan neutral $550). Analysts cited strong 2027 data‑center growth expectations (server CPU growth >70% and total DC growth well over 100%) as reasons for optimism, while noting near‑term guidance and other risks could pressure the stock.

Palantir Soars on Surging AI-Sovereignty Revenue

On Aug. 4, 2026 Palantir reported blockbuster Q2 results, with revenue rising 93% year‑over‑year to $1.94 billion and net income increasing roughly 125%. The quarter beat analyst consensus (~$1.8B) and was driven by the U.S., where revenue more than doubled to $1.57 billion — commercial revenue jumped 149% to $764 million while government revenue grew 90% to $809 million. Management and CEO Alex Karp credited strong demand for AI‑sovereignty and data‑privacy offerings such as AIP and AIP Evolve, positioning Palantir as a counterweight to frontier AI labs. The company raised full‑year revenue guidance to $8.15B–$8.158B and expects commercial revenue above $3.424B. Wall Street firms including Deutsche Bank, UBS, Citi and BofA raised price targets or ratings, and shares rose about 14–16% in extended trading.

Warnings of an AI Bubble and Potential Crash

Multiple financial commentators and analysts warn that the rapid rise of AI may constitute an unprecedented financial bubble that could trigger a broad economic crisis. The article cites figures including Jim Rickards, Jeremy Grantham, and Gary Gensler who argue AI-driven speculation and massive cash burn—highlighted by claims that OpenAI is losing over $1 billion per month—create systemic risk. Concerns include risky debt structures financing data centers, circular financing that inflates demand, and physical limits to GPU scaling and energy consumption. Prominent investors cited (Stanley Druckenmiller, Peter Thiel, Michael Burry) are reportedly reducing exposure or betting against AI, and analysts warn of a looming "Minsky moment" where speculative leverage could precipitate a market collapse with wide economic fallout.