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Key Points AMD’s Q3 revenue beat estimates, driven by strong Datacenter and Gaming sales. Goldman Sachs calls AMD an "AI winner," but still won’t pull the trigger. CEO Lisa Su highlights a new OpenAI partnership and predicts impressive AI revenue by 2027. 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. 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. Economy BlackRock exec drops hot take on economy Wall Street’s calm hides a brewing storm, and Rick Rieder thinks the Fed can steer away. Moz Farooque 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. More Tech Stocks: As Palantir rolls on, rivals are worth a second look Nvidia’s next big thing could be flying cars Cathie Wood sells $21.4 million of surging AI stocks 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. Stocks Top analyst drops jaw-dropping price target on Nvidia stock One analyst just gave Nvidia a target so high it makes Wall Street blink. Moz Farooque NVDA About the authors Moz (Muslim) Farooque is a financial journalist, U.S. stock and crypto analyst, and founding editor at Undervalued Deep Insights.He specializes in deep dives on AI & emerging tech, electric-vehicle disruptors, big-tech giants, blockchain & crypto markets, and entertainment & media stocks. Celine is an experienced writer and editor covering news, features, academic/research, and legal topics for over 20 years. At TheStreet.com, Celine is a senior editor with experience across retail, stocks, investing, personal finance, technology, the economy, and travel.
