AMD stock initiated with Neutral rating by Goldman Sachs at $140
Investing.com
Published Jul 10, 2025 06:25AM ET
Investing.com - Goldman Sachs initiated coverage on Advanced Micro Devices (NASDAQ:AMD) with a Neutral rating and a price target of $140.00 on Thursday. According to InvestingPro data, AMD's current valuation appears fair, with the stock trading at a P/E ratio of 101.36 and showing strong momentum with a 19.28% return over the past six months.
The investment bank views AMD as a fabless provider of X86-based Server and PC CPUs, custom SoCs, and merchant GPUs, noting the company has executed well and gained significant market share in the X86 Server CPU and PC CPU markets. The company's execution is reflected in its impressive 21.71% revenue growth over the last twelve months, with total revenue reaching $27.75 billion.
Goldman Sachs expects AMD's share gains in the Server CPU market to slow due to increasing penetration by ARM-based solutions, despite the overall positive trend continuing.
The firm believes AMD's merchant GPU solutions will likely gain limited market share against Nvidia (NASDAQ:NVDA)'s established position, which is strengthened by software advantages, and against ASICs that continue to capture more wallet share.
Goldman Sachs also notes that AMD is expected to remain in investment mode as it pursues opportunities in AI accelerators, which may result in earnings growth that falls short of investor expectations.
In other recent news, Advanced Micro Devices (AMD) is set to release its fiscal second-quarter 2025 financial results on August 5, 2025. The company's management will discuss these results in a conference call available via webcast. KeyBanc Capital Markets has reiterated its Sector Weight rating on AMD, noting that the company is projected to achieve $7 billion to $8 billion in AI revenues this year, driven by strong demand for its MI355 AI GPU. Meanwhile, Truist Securities maintained its Hold rating on AMD, highlighting ongoing debates about the company's datacenter GPU business and its customer motivations. Mizuho has raised its price target for AMD to $152, citing strong demand for AI accelerators and adjusting its revenue estimate for the June quarter to $7.40 billion. Melius Research upgraded AMD from Hold to Buy, increasing its price target to $211, based on optimistic AI growth prospects and potential earnings per share reaching $8 within two years. These developments reflect significant interest and varying perspectives from analysts on AMD's growth trajectory in the AI and GPU markets.
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