Goldman Sachs flags Intel’s recovery, but still prefers AMD’s AI momentum

Intel’s turnaround narrative is getting louder, but Goldman Sachs is still not betting the farm on the bet. In a market commentary carried by Barchart, analyst James Schneider laid out a “clear” preference between Intel and Advanced Micro Devices, arguing that while Intel is improving, AMD offers the stronger near-term mix of visibility and upside drivers tied to artificial intelligence demand.

The piece attributes Intel’s shifting story largely to a change in operational direction under CEO Lip-Bu Tan. It points to a sequence of earnings beats and a strengthened AI strategy as key signs that Intel’s recovery may be taking hold after years of investor frustration. It also frames the company’s current posture as a transformation effort, emphasizing how Intel has attempted to reposition itself after sitting out much of the earlier AI wave.

On the operating side, the commentary cites Intel’s first-quarter results as evidence of momentum. It says revenue rose 7% year over year to $13.6 billion, and describes the quarter as showing “solid signs of progress.” The post also argues that investor sentiment has improved alongside performance, adding that Intel shares were up 236% year to date at the time of the commentary, outpacing the S&P 500’s gain.

Goldman Sachs’ stated stance, as summarized in the article, is that Schneider rated Intel stock “Neutral” with a price target of $150, implying roughly 25% upside from then-current levels. The key point was not that Intel lacks catalysts, but that the analyst believes AMD’s position in the AI buildout is more attractive right now on revenue visibility and competitive momentum.

The comparison places AMD in a leadership role in AI infrastructure. The commentary says AMD is expanding its lead in areas tied to AI servers and data-center compute, gaining server market share, and benefiting from surging demand for data-center and AI chips. In this framing, the AI opportunity is not just about chip demand in general, but about the platforms and server ecosystems that accelerate enterprise adoption.

The piece also suggests that Intel’s “investment case has dramatically changed” over the last few years, but that the current risk-reward tradeoff still favors AMD. That distinction matters because it reflects timing: Schneider appears to see upside in Intel’s longer-term catalysts, while concluding that AMD is positioned to monetize the AI cycle more predictably in the near to intermediate term.

Still, investors have limited incremental disclosure here. The commentary does not provide granular line-item detail beyond the headline revenue growth figure, and it does not lay out a full bull-base-bear scenario for either company. As with much market writing based on analyst commentary, the assessment depends on assumptions that are not fully spelled out in the post.

For Intel, the next checkpoint is whether continued execution translates into sustained earnings power and credible delivery against AI strategy. For AMD, attention will likely stay on whether its server and data-center gains persist as AI infrastructure demand evolves, and whether that translates into durable financial outperformance. The market is watching, and Goldman’s preference provides one roadmap for what it considers the more compelling path through the AI supply-demand cycle.