G Sachs Anticipates Strong Growth for AMD's Data Center Business This Year Despite Limited Short-Term Operating Leverage

AMD Stock Outlook: Despite strong quarterly revenue and guidance, AMD's stock price is expected to decline due to higher-than-expected operating expenses, according to Goldman Sachs.

Market Sentiment and Positioning: Investors are preparing for AMD's earnings release, driven by positive market sentiment, increased server CPU market share, and advancements in AI infrastructure.

Data Center Business Growth: Goldman Sachs anticipates robust growth in AMD's data center business this year, supported by increased server market share and the mass production of MI400 series products.

Neutral Rating and Future Considerations: Goldman Sachs maintains a Neutral rating on AMD with a target price of USD210, suggesting a more positive outlook could emerge if confidence in revenue streams and execution improves in the coming quarters.