AMD Rallies Premarket After Blowout Results: Goldman Upgrades Stock, Calls It 'Outsized' Winner In Agentic AI

• Advanced Micro Devices reported a first-quarter profit of $1.38 billion and revenue of $10.25 billion, exceeding analyst estimates; second-quarter forecasts were also above targets
• CEO Lisa Su signaled that AI-driven sales growth would remain strong in the coming years.
• Stocktwits sentiment for AMD shifted to ‘extremely bullish’ from ‘bullish,’ but some traders expressed skepticism about whether the rally would sustain.

Advanced Micro Devices shares surged 17% in early premarket trading on Wednesday after the chipmaker delivered a strong quarterly report and upbeat outlook, prompting an upgrade from Goldman Sachs. 

If the move holds in the regular session, it would be AMD’s best single-day performance in about seven months.

Goldman Sachs upgraded AMD to ‘Buy’ from ‘Neutral’ and increased the price target to price target $450 from $240, which implies a 27% from the stock’s close on Tuesday. 

Pointing to tailwinds in AMD’s server CPU business, Goldman Sachs said it expects the company to be a major beneficiary of the surge in agentic AI tools, adding that its x86 architecture is likely to remain central to the new wave of deployments.

Roth Capital bumped up its AMD price target to $500 from $300 and kept its ‘Buy’ rating, noting the company’s strong results and forecasts.

AMD Results, Commentary

AMD’s revenue rose 38% to $10.25 billion in the last quarter, beating analysts’ estimates of $9.9 billion, with data center segment sales surged 57%. The company guided current-quarter revenue of $11.2 billion, plus or minus $300 million, also higher than the $10.54 billion analysts had penciled in.

On the analyst call, CEO Lisa Su signaled that AI-driven sales growth would remain strong in the coming years.

“Based on the demand signals we are seeing today and the structural increase in CPU compute requirements driven by agentic AI, we now expect the server CPU TAM to grow at greater than 35% annually, reaching over $120 billion by 2030,” Su said.

“It’s happening at a much faster pace… we’re seeing significantly more CPU demand from really every major cloud provider, as well as enterprise customers… We now expect server CPU revenue to grow by more than 70% year over year in the second quarter, with robust growth continuing through the second half of 2026 and into 2027,” she added.

Last week, Intel reported quarterly revenue and forecast that also beat expectations, triggering a 24% rally in its shares the next day.

Retail View On AMD Improves, But Some Remain Skeptical

On Stocktwits, the retail sentiment for AMD shifted to ‘extremely bullish’ from ‘bullish.’ Some traders appeared skeptical whether the rally would sustain after AMD had already risen 66% year to date, while others noted the stock crossing the notional $420 milestone.

A trader wrote: “It’s wild watching people pile into AMD at $400+ when they wouldn't touch it at a 50% discount two months ago. FOMO is a hell of a drug. I’ll be waiting for these same buyers to panic-sell it back to $300 or $280 in a few months. Buy the fear, sell the hype—or get caught in the middle.

“I’m staying up to light a joint at 420 lol,” another trader said in a lighter vein.

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