Shares of Advanced Micro Devices (AMD) rallied Tuesday after KeyBanc Capital Markets analyst John Vinh raised his price target on the stock to $725 from $530, marking a new high among Wall Street analysts. The new target suggests a more than 28% upside from current levels, and KeyBanc maintained its Overweight rating on the shares.
The bullish outlook is driven by strong demand for artificial intelligence data centers, which is boosting the broader semiconductor sector. Vinh's research note highlighted increased production, tighter supply, and higher memory pricing. KeyBanc also forecasts significant growth in AMD's AI graphics processing unit (GPU) revenue, expecting it to reach $16.8 billion in 2026 and $48.5 billion in 2027. Other analysts from BofA and TD Cowen also recently raised their targets, citing similar optimism.