Goldman Sachs trims its AMD price target to $675, arguing the selloff may have overshot

Advanced Micro Devices has drawn another analyst recalibration after a sharp pullback in its shares, with Goldman Sachs moving to temper the market’s bearishness.

In a note highlighted by Yahoo Finance, Goldman Sachs cut its AMD price target to $675 from $700 while keeping a Buy rating. The firm framed the adjustment as a response to how far the stock had fallen, suggesting the selloff may have gone too far relative to its expectations.

Goldman Sachs’ new target represented about 40% upside versus AMD’s trading level at the close referenced in the report. The stock has declined materially from its recent peak, with the note describing AMD shares as about 28% below their October high.

The bank’s view arrives as investors have grappled with the question of whether AMD’s spending plans to participate in the AI buildout could pressure near-term margins. The Yahoo Finance item characterizes that concern as a key driver of the selloff, implying that the market has been reacting to the potential cost of ramping AI-related efforts.

Goldman Sachs did not, in the portion of reporting reflected here, provide new granular detail on specific product schedules or updated financial guidance. It also did not lay out, in the cited summary, any new numbers tied to revenue, gross margin, or operating expense directly connected to the target change.

AMD’s position in the AI ecosystem is tied to chips used to train and run machine-learning workloads, and the company competes with other semiconductor suppliers for design wins and accelerations in data centers. In that environment, investor focus often extends beyond demand itself to the pacing of investment, because building supply and supporting customers can require upfront spending before returns show up in reported results.