Advanced Micro Devices, Inc. (NASDAQ:AMD) offers a compelling buying opportunity even as rival Intel Corporation (NASDAQ:INTC) remains a Sell, a Goldman Sachs analyst said Wednesday.
The AMD, Intel Analyst: Analyst Toshiya Hari upgraded AMD from Neutral to Bu, and added the shares to Goldman's Conviction List. The analyst raised the AMD price target from $84 to $96.
Hari reiterated a Sell rating on Intel shares and reduced the price target from $38 to $46.
Goldman Projects Above-Consensus AMD Earnings Growth: The recent correction that resulted in AMD shares declining about 17% from their September highs presents a compelling opportunity to participate in what could be a multiyear share gain and margin expansion story, Hari said in a note.
The weakness may have to do with concerns around the sustainability of demand and AMD's proposed acquisition of Xilinx, Inc. (NASDAQ:XLNX), the analyst said.
Related Link: Intel Makes Its Second AI Acquisition In A Week
AMD is poised to experience share gains across the PC and CPU markets — and margin expansion, he said.
These factors, along with operating leverage, will likely drive above-consensus earnings growth, Hari said.
Goldman Bearish On Intel: The ongoing concerns surrounding Intel's competitive position in CPUs, which fetch the company around 70% of total revenue, and its margin profile have left Goldman bearish on the company, the analyst said.
AMD, Intel Price Action: AMD shares were trading 4.97% higher at $80.38 at last check Wednesday, while Intel shares were up 1.65% at $45.59.
Related Link: Why The Best Outcome For Intel Shareholders Is To Break Up The Chipmaker
Photo courtesy of AMD.
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
