KeyBanc Upgrades AMD to Overweight

KeyBanc analyst John Vinh upgraded AMD (NASDAQ: AMD) from Sector Weight to Overweight with a price target of $270.00.

“We had previously downgraded AMD to SW on 4/7/25, as we were increasingly concerned there would be an air pocket in demand between MI355 and the launch of its rack-scale Helios platform with MI455, which isn’t expected to ramp into volume until late 2026.

However, a number of factors have led us to revisit our rating, including: Our supply chain checks indicate the recent surge in hyperscaler demand has led to AMD to almost being completely sold out of server CPU in 2026 and is potentially considering a price increase of 10-15% in 1Q26.

We estimate server CPU for AMD will grow at least 50% this year.

Regarding AI GPUs, we’re seeing indications of 200K MI355 GPUs in the 1H and a significant ramp of MI455 in the 2H, of which 290K-300K is targeted for its rack scale solution Helios.

It remains unclear how many racks AMD will be able to ship; similar to NVDA, we expect AMD to rev rec significant amounts of MI455/Helios revenues as it sells in its components to its ODM partner ZT systems.

We estimate that this will support AI revenues this year in the range of $14B-$15B.”

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