Goldman Sachs and Bernstein upgrade AMD after Q1 beat, citing agentic AI as structural growth driver

AMD reported first-quarter revenue of $10.25 billion and earnings per share of $1.37, exceeding Wall Street estimates of $9.9 billion and $1.28 respectively. Datacenter revenue reached $5.78 billion, up 57% year over year. Shares surged over 18% on the day.

Goldman upgraded AMD to Buy with a price target of $450 from $240, citing tailwinds from agentic AI (self-directed AI agents) across enterprise and consumer workloads. Bernstein lifted its rating to Outperform from Market-Perform and raised its price target to $525 from $265, modeling AMD earnings above $14 per share in 2027 and approaching $20 in 2028.

For Q2, AMD guided to revenue of $11.2 billion versus the Street's $10.5 billion estimate, with datacenter revenues expected to grow double-digits sequentially and server CPUs projected to grow more than 70% year over year.

Alibaba emerged as China's leading beneficiary of AI buildout according to a Morgan Stanley survey of 60 chief information officers conducted in March and April, with Alibaba's Qwen model consolidating its lead across cloud, models, and applications.