Observed Signal · May 6, 2026 · Analyst Upgrade · Source: CNBC Investing · Impact: 4/5 · Sentiment: Positive
Goldman Sachs Upgrades AMD After Blowout Earnings
Goldman Sachs upgraded Advanced Micro Devices to a buy from hold and raised its price target to $450 (from $240) after AMD reported first-quarter results that beat expectations and provided above-estimate Q2 revenue guidance. AMD shares jumped about 18% on the news. Goldman cited structural tailwinds from the rise of agentic AI and increasing inference workloads as drivers that should expand demand for server CPUs, forecasting AMD server CPU revenue of $21.1 billion by the end of 2027 — roughly 24% above consensus. Analyst James Schneider framed AMD as a way to gain exposure to enterprise and consumer agentic AI adoption. LSEG data showed 39 of 52 analysts covering the stock have a buy or strong buy rating.
Major semiconductor company reported strong earnings and guidance tied to AI demand; analyst upgrade and raised price target signal material implications for server CPU demand and AI infrastructure spending that affect technology supply chains and investor sentiment.
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Key Takeaways & Evidence Grounding
- Goldman Sachs upgraded Advanced Micro Devices to buy from hold and raised its price target to $450 from $240.
- AMD reported first-quarter results that beat analyst expectations and gave second-quarter revenue guidance above estimates; shares rallied ~18%.
- Goldman Sachs forecasts AMD server CPU revenue of $21.1 billion by end of 2027, about 24% above Street consensus.
- Goldman cited 'agentic AI' proliferation and a shift toward more inference workloads as medium-term tailwinds for AMD's server CPU TAM (total addressable market).
- LSEG data shows 39 of 52 analysts covering AMD have a buy or strong buy rating.
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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.
Citi Upgrades AMD on Rising GPU Demand
Citi upgraded Advanced Micro Devices (AMD) from neutral to buy and raised its price target to $575, citing stronger-than-expected demand for AMD graphics processing units (GPUs). Analyst Atif Malik highlighted a multiyear deal between AMD and Meta to deploy up to 6 gigawatts of GPUs, and said Meta is likely to be a significantly larger customer for AMD AI products than the Street expects. Citi estimated each gigawatt could represent roughly $15 billion in revenue for AMD and raised its AI sales forecasts to $33 billion in 2027 and $50.8 billion in 2028. Citi also said AMD could surpass earnings above $20 per share by 2028. The article was published June 12, 2026, by Davis Giangiulio on CNBC.
AMD Q1 2026 Beats Estimates; Stock Jumps 16%
Advanced Micro Devices reported stronger-than-expected first-quarter 2026 results driven by rapid data center demand for AI workloads. AMD posted adjusted EPS of $1.37 and revenue of $10.25 billion, beating LSEG consensus estimates. Data center revenue rose 57% year-over-year to $5.8 billion. The company forecast about $11.2 billion in revenue for Q2 2026, above Street expectations. AMD said its data center business is now the primary growth driver and expects server growth to accelerate as it scales supply. Management reiterated ambition to reach tens of billions in data center AI revenue next year and to exceed long-term growth targets. The stock rallied about 16% after the results, and AMD highlighted upcoming shipments of its Helios rack-scale AI system and partnerships with OpenAI and Meta for large-scale deployments.
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