KeyBanc upgraded Intel and Advanced Micro Devices to overweight, saying both chipmakers are benefiting from robust hyperscaler demand. The bank raised its price target to $60 for Intel, implying that the stock could rise 36% from Monday’s close. Intel have soared 129% over the past year. Analyst John Vinh pointed out that Intel is largely sold out of server CPUs in 2026 amid outsized data center demand. Given this strength in demand, the company is considering raising its average selling price by 10% to 15%. Vinh also highlighted progress in Intel’s foundry business, saying yields on its latest 18A process technology have improved to over 60%. “While not best in class, as TSMC was at 70-80% when it launched 2nm, with INTC’s aspirations of being the #2 foundry supplier, 60%+ yield is significantly better than SF2 at Samsung Foundry, which we believe is less than 40%,” he added. The analyst pointed out that Intel has already landed Apple as a customer on 18A for low-end series processors used in MacBooks and iPads. Additionally, he believes that Intel and Apple are currently in discussions to use Intel’s 14A technology to support low-end mobile processors for iPhones. He added that other major hyperscalers such as Amazon, Alphabet and Meta, have expressed their interest in Intel’s advanced packaging technologies. KeyBanc also lifted its price target for fellow chipmaker Advanced Micro Devices to $270, implying an upside of 30%. Shares have jumped 77% over the past year. Likewise, Vinh said that Advanced Micro has largely sold out of server CUPs for the year and is considering similar price increases. The analyst also expects AMD’s artificial intelligence graphics processing units to generate roughly $14 billion to $15 billion in revenue this year. This would be driven by demand for its MI355 GPUs in the first half of the year and a “significant ramp” in MI455 GPUs in the second half.
