Goldman Sachs Downgrades AMD Amid Industry Volatility

Despite reporting record Q2 revenue of $11.54 billion, driven largely by its Data Center segment which accounts for 58% of sales, Advanced Micro Devices (AMD) has been downgraded to a Sell rating by Goldman Sachs.

The company projects strong Q3 revenue of $13 billion and continues to gain market share in server CPUs, supported by AI investments from Microsoft and Meta. However, some analysts remain cautious due to industry volatility and supply chain risks.

This mixed outlook has led to differing views on AMD's near-term prospects, with Bernstein maintaining a Buy rating and raising its 12-month price target to $650, reflecting a 32% upside from current levels.