Goldman Sachs Views AMD as AI Leader but Cautions on Near-Term Stock Performance
Goldman Sachs analyst James Schneider affirmed AMD's position as a key player in the AI semiconductor space following stronger-than-expected Q3 results. Revenue reached $9.2 billion, surpassing consensus estimates of $8.76 billion, driven by robust Datacenter ($4.34B) and Gaming ($1.30B) segments. The performance underscores accelerating AI infrastructure spending, though embedded systems revenue disappointed at $857 million.
While maintaining a neutral rating, Goldman noted investor enthusiasm around AMD's OpenAI collaboration and upcoming November 11 Analyst Day. Gross margins showed modest contraction, reflecting the mixed nature of the beat. The firm anticipates potential consolidation in the stock as the market digests elevated expectations against margin pressures.
