Advanced Micro Devices (NASDAQ: AMD): Goldman Sachs Maintains Buy Rating Following Record Q2 Results

• Goldman Sachs maintained its Buy rating and $640 price target on Advanced Micro Devices following the company’s second-quarter results.
• AMD reported record quarterly revenue of $11.54 billion, up 50% year over year, while Data Center revenue more than doubled.
• AMD expects third-quarter revenue of approximately $13.0 billion, plus or minus $300 million, supported by continued demand for EPYC processors and Instinct GPUs.

Goldman Sachs maintained its Buy rating on Advanced Micro Devices (NASDAQ: AMD), with analyst James Schneider keeping a $640 price target following the semiconductor company’s second-quarter results. 

AMD designs high-performance processors, graphics technologies and computing solutions for data centers, personal computers, gaming systems and embedded applications. The company competes with semiconductor businesses including Intel and NVIDIA while expanding its presence in artificial intelligence infrastructure.

AMD reported record second-quarter 2026 revenue of $11.54 billion, an increase of 50% from the previous year. GAAP net income reached $2.30 billion, while diluted GAAP earnings per share increased to $1.38. On a non-GAAP basis, AMD reported earnings of $1.66 per diluted share.

The Data Center segment was the company’s primary growth driver. Segment revenue increased 107% year over year to $6.7 billion, representing approximately 58% of AMD’s total quarterly revenue. Growth was driven by strong demand for AMD EPYC server processors and AMD Instinct GPUs.

Bernstein SocGen Group also maintained a positive view of AMD. Analyst Stacy Rasgon kept an Outperform rating and raised the firm’s price target to $650 from $600. Bernstein cited AMD’s stronger-than-expected third-quarter outlook and continued growth across its Data Center and Embedded businesses.

For the third quarter of 2026, AMD expects revenue of approximately $13.0 billion, plus or minus $300 million. The midpoint would represent growth of approximately 41% year over year and 13% sequentially. The company also expects a non-GAAP gross margin of approximately 56%.

AMD’s expanding AI relationships provide additional support for its long-term outlook. The company has identified Meta and Microsoft among the organizations deploying its Helios rack-scale systems, while its expanded Microsoft collaboration includes plans to deploy Helios infrastructure on Azure.

Despite the strong results, investors should continue monitoring execution risks and weaker areas of AMD’s business. Gaming revenue declined 31% year over year to $779 million because of lower semi-custom revenue. Competition in AI accelerators, elevated operating expenses and the company’s valuation also remain important considerations.

Overall, AMD’s second-quarter results demonstrated substantial growth in data-center computing and AI infrastructure. Goldman Sachs’ maintained Buy rating and $640 price target, together with Bernstein’s $650 target, reflect continued analyst optimism regarding AMD’s server CPU and AI accelerator opportunities.