Goldman Sachs offers subtle twist on AMD stock post-earnings | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Advanced Micro Devices (AMD) reported Q3 earnings on November 4, giving investors more proof that its AI story is real and keeping the long-term growth story intact.

Its Q3 report showed signs that its AI push is starting to take shape, but perhaps not fast enough to sway short-term investors.

Consequently, Goldman Sachs weighed in with a fresh take that manages to be both optimistic and cautious. Analyst James Schneider, who boasts a solid 62% success rate on his calls, hailed AMD as an “AI winner,” but feels the near-term path may still be bumpy.

He summed it up with a neutral rating while keeping a $210 price target on the stock, implying a 16% downside from AMD’s current price.

A Goldman Sachs research report on AMD’s Q3 showing signaled continued confidence in its AI strategy.

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Goldman Sach’s AI praise of AMD comes with a pause

Goldman Sach’s note walks a fine line, acknowledging AMD’s AI upside following a beat-and-raise quarter, while also noting the near-term bumpiness in its stock price.

And despite the stellar top-line results, some softness in its bottom line throws more weight behind the cautious sentiment.

What “AI winner” does (and doesn’t) mean right now

Schneider calls AMD a solid AI winner after another superb beat-and-raise quarter.

Revenue came in at $9.2 billion, blowing past Wall Street’s $8.76 billion estimate and Goldman’s own $8.92 billion call, spearheaded by robust Datacenter and Gaming sales. That number includes $4.34 billion in Data Center haul, underscoring the strength in AI demand.

Operating EPS (earnings per share) came in at $1.20, falling just short of Goldman’s $1.23 forecast, with AI investment keeping margins tighter at 54%.

CFO Jean Hu talked about how operating expenses jumped 42%, as AMD continues to invest aggressively in R&D to capitalize on AI opportunities. Hence, the margin pressure is essentially the trade-off for long-term growth ahead.

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Nevertheless, AMD’s outlook for $9.6 billion in Q4 sales and a 54.5% gross margin reinforces the theme of steady AI tailwinds, not a sudden windfall.

Still, Schneider warns that much of the optimism might already have been baked in. With the stock hovering above his $210 target, Goldman feels AMD stock will stay range-bound as investors wait for fresh catalysts.

Goldman’s rationale on AMD, in brief:

AI roadmap strength was confirmed by Q3 Datacenter gains.
Guidance above forecasts, underscoring superb AI-driven momentum.
Margins remain steady, despite the significant investment in products.
Valuation stretch limits upside, with Schneider keeping a neutral rating at $210, despite strong fundamentals.

AMD CEO Lisa Su’s Q3 earnings call highlights

AMD’s smashing Q3 quarter sounds different when you hear it straight from the CEO. Here are a few top quotes from Lisa Su that tell the story without spin:

“We delivered an outstanding quarter with record revenue and profitability, reflecting broad-based demand across our data center AI, server, and PC businesses. Revenue grew 36% year over year to $9.2 billion. Net income rose 31%, and free cash flow more than tripled, led by record EPYC, Ryzen, and Instinct processor sales.”
“In the cloud, we had record sales as hyperscalers expanded EPYC CPU deployments to power both their own first-party services and public cloud offerings. Hyperscalers launched more than 160 EPYC-powered instances in the quarter, including new Turin offerings from Google, Microsoft Azure, Alibaba, and others that deliver unmatched performance and price performance across a wide range of workloads.”
“On the customer front, we announced a comprehensive multiyear agreement with OpenAI to deploy 6 gigawatts of Instinct GPUs, with the first gigawatt of MI450 Series accelerators scheduled to start coming online in the second half of 2026. The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software, and full stack solution strategy.”
“In summary, our AI business is entering a new phase of growth and is on a clear trajectory toward tens of billions in annual revenue in 2027, driven by our leadership rack scale solutions, expanding customer adoption, and an increasing number of large-scale global deployments.”

What could move AMD next

Looking ahead, several factors could potentially move AMD stock, effectively shifting the tone from potential to proof. Here’s what to watch:

November 11, 2025 — Analyst Day: This is being touted as the next major checkpoint. Expect new updates on AMD’s potent AI game plan, from its MI300 and MI400 chips to new data-center goals. Investors will want to see how quickly production is ramping up, along with big-name customers signing on.
AI growth through early 2026: The MI350 and MI355 chips continue gaining traction, and the next few quarters will show whether the momentum sticks. New cloud deals would move the needle.
The OpenAI rollout (starting late 2026): The huge GPU deal will start turning into shipments next year, marking the point where Wall Street shifts from waiting to believing.