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AMD Gets KeyBanc Upgrade as Hyperscaler Demand Accelerates

Advanced Micro Devices, Inc. (NASDAQ:AMD) is one of the Trending AI Stocks on Wall Street. On January 13, KeyBanc analyst John Vinh upgraded the stock from Sector Weight to Overweight with a price target of $270.00. Firm analysts see surging hyperscaler demand for AMD, alongside stronger-than-expected server demand, and improving visibility across CPU and AI GPU segments.

Earlier, KeyBanc had downgraded AMD to Sector Weight as it was concerned about a potential demand “air pocket” between MI355 and the launch of its rack-scale Helios platform with MI455, anticipated to ramp into volume about late 2026. However, updated supply chain checks have eased these concerns.

The firm stated how supply chain data has revealed that the recent surge in hyperscaler demand has led to AMD being almost completely sold out of server CPU for 2026. Moreover, it may also potentially consider a price increase of about 10-15% in 1Q26.

KeyBanc estimates AMD’s server CPU and AI GPU business to demonstrate strong growth, driven by hypersaler demand and a ramp in MI455 and MI355 accelerators. AI revenues are likely to reach the range of $14-$15 billion this year.

“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 recognize 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.”

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

While we acknowledge the risk and potential of AMD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than AMD and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 11 AI Stocks on the Market’s Radar and 12 Hot AI Stocks to Keep on Your Radar

Disclosure: None.

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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