AMD Stock Upgraded to Overweight by KeyBanc on Surging AI Chip Demand

KeyBanc analyst John Vinh upgraded Advanced Micro Devices (AMD) from "Sector Weight" to "Overweight." Vinh set a new price target of $270.

This decision is driven by exceptionally strong demand from hyperscale data centers. This demand has resulted in AMD's server CPUs being almost completely sold out for 2026.

KeyBanc estimates AMD's server CPU business could grow by at least 50% this year. The firm projects AI-related revenue will reach between $14 billion and $15 billion in 2026.

Shipments of the MI355 and MI455 AI accelerators bolster this AI revenue projection. The surge in demand may prompt AMD to consider a 10-15% price increase for its server CPUs in the first quarter of 2026.