Goldman Sachs analyst James Schneider raised the 12-month stock price target for Advanced Micro Devices (AMD) from $450 to $640 on Monday, July 6, 2026.
The firm maintained a 'Buy' rating as artificial intelligence infrastructure spending fuels data center revenue growth.
The financial institution adjusted its semiconductor forecasts following a historic second quarter where the PHLX Semiconductor Index surged 87.8 percent.
Goldman Sachs warned that while computing and memory segments remain robust, a broad-based market rally is unsustainable, making individual stock performance increasingly divergent.
Advanced Micro Devices emerged as a top selection for the firm within the computing supply chain.
Financial models from Goldman Sachs projected AMD's 2027 data center revenue at $66.682 billion, approximately 18 percent higher than the general market consensus.
This growth is driven by strong server CPU demand and the ramp-up of AI accelerators.
The investment bank also lifted its price target for equipment manufacturer Applied Materials from $520 to $645.
Strong investments in dynamic random-access memory (DRAM) and high-bandwidth memory (HBM) are expected to drive significant growth for the equipment firm, extending its order visibility into 2028.
In contrast, Goldman Sachs maintained a 'Sell' rating on ARM due to weak smartphone demand and elevated operating expenses.
Conversely, the firm raised its target for Qualcomm from $145 to $180 as the mobile chipmaker incorporates data center business into its growth narrative, projecting fiscal year 2027 to 2028 revenues between $5.0 billion and $8.2 billion.
The wider Wall Street consensus mirrors this positive stance on AMD, with TipRanks data from July 6 showing 28 out of 35 analysts rating the stock as a 'Strong Buy.'
However, the consensus average price target of $515.69 suggests a potential 8 percent decline from AMD's current trading price of $559.85.
AMD shares have surged 150.53 percent year-to-date in 2026, despite a broader technology sector slowdown in June.
This performance places AMD behind Intel, which recorded a 218.55 percent increase since the first regular trading session of the year on January 2.
Investors are now looking toward the upcoming Advancing AI 2026 event scheduled for July 23, 2026, in San Francisco.
Market participants expect AMD to provide an updated AI server product roadmap, customer adoption milestones, and future revenue trajectories during the live presentation.
