AMD Gets KeyBanc Upgrade as Hyperscaler Demand Accelerates

2 weeks ago 12

Ghazal Ahmed

Sat, January 17, 2026 astatine 11:55 AM CST 2 min read

Advanced Micro Devices, Inc. (NASDAQ:AMD) is 1 of the Trending AI Stocks connected Wall Street. On January 13, KeyBanc expert John Vinh upgraded the banal from Sector Weight to Overweight with a terms people of $270.00. Firm analysts spot surging hyperscaler request for AMD, alongside stronger-than-expected server demand, and improving visibility crossed CPU and AI GPU segments.

Earlier, KeyBanc had downgraded AMD to Sector Weight arsenic it was acrophobic astir a imaginable request “air pocket” betwixt MI355 and the motorboat of its rack-scale Helios level with MI455, anticipated to ramp into measurement astir precocious 2026. However, updated proviso concatenation checks person eased these concerns.

The steadfast stated however proviso concatenation information has revealed that the caller surge successful hyperscaler request has led to AMD being astir wholly sold retired of server CPU for 2026. Moreover, it whitethorn besides perchance see a terms summation of astir 10-15% successful 1Q26.

KeyBanc estimates AMD’s server CPU and AI GPU concern to show beardown growth, driven by hypersaler request and a ramp successful MI455 and MI355 accelerators. AI revenues are apt to scope the scope of $14-$15 cardinal this year.

“We estimation server CPU for AMD volition turn astatine slightest 50% this year. Regarding AI GPUs, we’re seeing indications of 200K MI355 GPUs successful the 1H and a important ramp of MI455 successful the 2H, of which 290K–300K is targeted for its rack-scale solution Helios. It remains unclear however galore racks AMD volition beryllium capable to ship; akin to NVDA, we expect AMD to admit important amounts of MI455/Helios revenues arsenic it sells successful its components to its ODM spouse ZT Systems. We estimation that this volition enactment AI revenues this twelvemonth successful the scope of $14B–$15B.”

Advanced Micro Devices, Inc. (NASDAQ:AMD) develops and sells semiconductors, processors, and GPUs for information centers, gaming, AI, and embedded applications.

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Disclosure: None.