AMD Stock Upgrade Boosts AI Server Outlook
AMD stock upgrade by KeyBanc cites hyperscaler AI server demand and constrained supply, prompting upside to revenue, EPS and the $270 price target.
KEY TAKEAWAYS
- KeyBanc upgraded AMD to Overweight citing hyperscaler AI server demand and near sellout of 2026 server CPUs.
- Analyst used a 34x multiple on $7.93 EPS to set a $270 12-month price target.
- Supply checks and possible 10-15% CPU price hikes imply upside to revenue and EPS if orders ship.
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KeyBanc upgraded AMD stock (NASDAQ:AMD) on Jan. 13, 2026, citing supply-chain checks in Asia that revealed strong hyperscaler AI server demand. The firm noted that server-CPU capacity could remain constrained through 2026, supporting higher revenue and earnings forecasts.
KeyBanc Upgrade and Valuation
KeyBanc analyst John Vinh raised AMD’s rating from Sector Weight to Overweight and issued a companion upgrade for Intel in the same premarket note. He set a 12-month price target of $270 by applying a 34x multiple to his 2026 EPS estimate of $7.93.
Hyperscaler Demand and Revenue Outlook
Following an Asia trip, KeyBanc’s supply-chain checks found hyperscaler demand had nearly sold out AMD’s server CPUs for 2026 and identified memory shortages across markets. AMD is considering a 10–15% price increase for server CPUs in the first quarter.
Vinh projects server-CPU sales to grow at least 50% over the next 12 months. He expects combined revenue from server CPUs and AI chips, including the MI455 and Helios products, to reach $14–15 billion in 2026. AI chips are forecast to account for about one-third of total revenue that year.
December cloud-instance data showed AMD processor instances were flat month-over-month and up 16.0% year-over-year. Turin instances rose 4.0% month-over-month to 2,252, Genoa climbed 1.0%, and combined latest-generation instances increased 2.0%.
Taken together, the upgrade, supply constraints, and pricing plans form the basis of KeyBanc’s valuation. If hyperscaler demand continues and price increases are implemented, these factors could drive upside to AMD’s revenue and earnings, supporting the price target. Attention will focus on AMD’s first-quarter pricing decision and whether hyperscaler orders translate into shipped racks, milestones that will influence future results.
