AMD Earns Buy Rating as Strong Datacenter Momentum Supports Unchanged $640 Price Target

James Schneider, an analyst from Goldman Sachs, maintained the Buy rating on Advanced Micro Devices. The associated price target remains the same with $640.00.

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James Schneider has given his Buy rating due to a combination of factors, starting with AMD’s ability to slightly exceed Wall Street expectations on revenue, earnings, and margins in a quarter that was already anticipated to be strong. He also highlights that datacenter performance, including server CPUs and AI GPUs, is tracking in line with or ahead of forecasts, reinforcing confidence in AMD’s competitive position in high-performance computing.

Schneider’s rating is based on management’s guidance that points to stronger revenue and earnings in the coming quarter versus consensus, suggesting continued momentum in core growth areas. He supports his $640 price target, unchanged from prior, with a 32x P/E applied to a normalized $20.00 EPS outlook, while acknowledging risks such as slower AI adoption, potential delays in large GPU deployments, and competitive pressures, which he views as manageable relative to AMD’s long-term opportunities.

In another report released today, Barclays also maintained a Buy rating on the stock with a $665.00 price target.