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.
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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.
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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.
