Goldman Sachs Reaffirms Neutral on AMD After Bullish Analyst Day Outlook

Core Viewpoint - Goldman Sachs maintains a Neutral rating and a $210 price target on Advanced Micro Devices Inc. (AMD) after the company's 2025 Financial Analyst Day, where management presented long-term targets that surpassed Wall Street expectations [1] Group 1: Financial Performance and Projections - AMD shares experienced a surge of over 10% intra-day following an optimistic presentation by executives regarding growth prospects in AI GPUs and CPUs, bolstered by a robust data center expansion plan [1] - The investment bank indicated that AMD's financial targets are achievable but hinge on significant improvements in gross margins, operational expense leverage, and scaling opportunities with key customers like OpenAI [2] Group 2: Strategic Partnerships and Market Position - Goldman Sachs recognized AMD's advancements in its data center GPU roadmap and the ongoing strength in its CPU segment, yet maintained a neutral outlook due to the dependency on the OpenAI partnership as a crucial growth driver [3] - The firm noted that a more positive stance could be adopted if there is increased confidence in AMD's revenue trajectory and execution timeline in the upcoming quarters [3]