Advanced Micro Devices (AMD)'s Datacenter Momentum Builds as Goldman Flags Operating Expense Pressure

NodeGuardian · 2026-02-20T02:54:51+00:00

AMD's fourth-quarter revenue exceeded expectations, fueled by its Datacenter segment, but Goldman Sachs kept a Neutral rating due to high operating expenses. While acknowledging AMD's strong long-term potential, they express concerns over immediate profitability and customer risk.

NodeGuardian

2026-02-20 02:54:51

Abstract generation in progress

Advanced Micro Devices (AMD) reported strong fourth-quarter revenue and guidance, primarily driven by its Datacenter segment, yet Goldman Sachs maintained a Neutral rating due to higher-than-expected operating expenses. The firm highlights AMD’s robust momentum in its Datacenter business for 2026, supported by market share gains and new product ramps, but notes limited near-term operating leverage due to significant AI infrastructure investments. Goldman Sachs’s rating reflects concerns over immediate operating leverage and customer concentration, though a more positive outlook is possible with improved revenue and execution.

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