AMD
Wall Street just hit AMD with a triple espresso
Advanced Micro Devices had a solid Tuesday on the tape, jumping more than 4% as analysts lined up to raise their price targets. KeyBanc, Bank of America, and TD Cowen all got more optimistic, and the market did what it usually does when a chip stock gets extra love: it started sprinting.
The AI story keeps getting louder
KeyBanc’s John Vinh kept an Overweight rating and hiked his target to $725 from $530. His take was basically: AMD’s server CPU capacity is improving, the AI GPU pipeline is getting fatter, and the company’s MI455 and Helios ramp still look like second-half-2026 fuel.
A few key nuggets from the note:
- server CPU growth could run 15% to 20% this year
- AI GPU revenue could reach $16.8 billion in 2026
- that could balloon to $48.5 billion in 2027
- CoWoS packaging supply has improved, which matters because AI chips are only as good as the bottlenecks around them
The broader chip trade is helping too
This wasn’t just AMD getting a glow-up in isolation. Semiconductor stocks were strong across the board, and Goldman Sachs data suggested hedge funds bought U.S. semis last week at the fastest pace in at least three-and-a-half years. Translation: the big money may have decided the recent chip-stock tantrum was over.
Why investors should care
AMD doesn’t need every analyst to become a cheerleader, but it sure helps when the sell-side starts treating it like the AI runway is still under construction, not already jammed with traffic. If these forecasts prove even half-right, the market may be pricing in more upside than the bears want to admit.
Big picture: AMD is still very much a sentiment stock wrapped around a semiconductor business — and right now, sentiment is wearing a gold jacket.