Advanced Micro Devices, Inc.

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Bullish +55

Goldman Sachs Raises its Price Target on Advanced Micro Devices, Inc. (AMD)

AI-generated analysis

📈 Goldman Sachs raised its price target on AMD to $640 from $450 while maintaining a Buy rating.

🤝 AMD and Rackspace Technology signed a definitive agreement for 30 megawatts of AI compute infrastructure.

🚀 The new AI computing power will be installed in phases from late 2026 through 2028.

💻 The partnership focuses on regulated enterprise workloads using AMD Instinct GPUs and EPYC CPUs.

📢 Both companies committed joint sales and marketing resources to pursue enterprise customers.

🏢 Rackspace CEO Gajen Kandiah noted the collaboration combines infrastructure with a governed operating model.

🧠 AMD SVP Dan McNamara stated the deal helps regulated enterprises place scalable AI infrastructure.

📉 Goldman Sachs acknowledged risks but believes other AI stocks may deliver higher returns sooner.

Bullish Signals
  • Goldman Sachs raised its price target on AMD to $640 from $450, indicating strong institutional confidence in the company's current valuation and growth prospects.
  • AMD secured a definitive agreement with Rackspace Technology to install 30 megawatts of AI compute infrastructure, representing a significant expansion of its enterprise footprint.
  • The partnership targets regulated industries, providing AMD with access to high-value enterprise customers seeking scalable AI solutions using its Instinct GPUs and EPYC CPUs.
Risk Factors
  • Goldman Sachs explicitly stated that while acknowledging AMD's risk and potential, it believes other AI stocks hold greater promise for delivering higher returns within a shorter time frame.
Full Analysis
Goldman Sachs raised its price target on Advanced Micro Devices (AMD) to $640 from $450 on July 6, maintaining a Buy rating. The firm cited AMD's position among the best AI stocks while noting that some competitors may offer higher returns in shorter timeframes. Simultaneously, AMD and Rackspace Technology signed a definitive agreement on June 16 to install an initial 30 megawatts of AMD-based AI compute infrastructure across Rackspace's global data centers. This legally binding contract expands upon a preliminary memorandum of understanding announced in May. The collaboration is scheduled to launch in phases from late 2026 through 2028, focusing on regulated enterprise workloads using AMD Instinct GPUs and EPYC CPUs within Rackspace's Enterprise AI Cloud architecture. Both companies committed joint sales and marketing resources to pursue enterprise customers across regulated industries. Executives from both firms highlighted the partnership's ability to combine compute infrastructure with a governed operating model, aiming to help regulated enterprises place scalable AI infrastructure efficiently.