Goldman Sachs published a report upgrading AMD’s rating to “Buy” and significantly raised its price target from $240 to $450, mainly benefiting from the structural advantages that proxy AI brings to its server CPU business, as well as the growth potential for data center GPUs in 2027 and beyond.

The bank expects that the widespread adoption of enterprise AI agents will accelerate the overall potential market growth for server CPUs, and that AMD's x86 architecture has a unique advantage due to its compatibility with existing enterprise infrastructure. In addition, the bank believes that the deployment opportunity of Meta's 6GW will bring significant upside to the data center GPU business. With the expected increase in server CPU revenue and gross margin, the bank has raised its 2027 and 2028 earnings per share forecasts for AMD by 14%, to $13.5 and $18 respectively, which is about 20% higher than the market forecasts.