KeyBanc Capital Markets has reaffirmed its bullish stance on Advanced Micro Devices (NASDAQ: AMD), maintaining an ‘Overweight’ rating.
The firm’s analyst, John Vinh, also maintained a $270 price target, implying upside of about 16% from AMD’s press-time price of $231.
In outlining the outlook, Vinh highlighted sustained strength in server CPU demand as a primary driver, noting that hyperscaler customers are increasingly locking in capacity well into 2026.
AMD’s latest-generation server platform is reported to be close to fully sold out through the end of that period, underscoring tight supply and strong demand visibility.
AI-related growth remains central to the thesis, with KeyBanc expecting AMD’s AI GPU revenue to reach $14 billion to $15 billion in 2026, supported by expanding deployments across cloud and enterprise customers.
The ramp of next-generation MI455 GPUs is expected to begin in the third quarter of 2026, with larger-scale Helios rack shipments anticipated in the fourth quarter. In the interim, GPU shipments to system partners are seen helping to bridge the gap ahead of full rack-scale rollouts.
Vinh also pointed to potential pricing tailwinds, with average selling prices expected to rise 10% to 15% amid tight supply and strong demand. These dynamics support expectations for better-than-consensus fourth-quarter 2025 results and higher first-quarter 2026 guidance.
However, sentiment remains mixed for Nvidia (NASDAQ: NVDA), as optimism around AMD’s AI progress and server CPU strength is balanced by skepticism over long-term GPU volumes and the company’s ability to compete at scale with Nvidia.
Investors are likely to focus on updates related to MI455 and Helios production timelines, AI revenue momentum into 2026, and broader server supply-demand trends.
Wall Street bullish on AMD shares
Overall, Wall Street analysts remain bullish on Advanced Micro Devices. Based on ratings tracked by TipRanks, AMD carries a Strong Buy consensus from 34 analysts. Of those, 26 recommend buying the stock, eight suggest holding, and none advise selling.
Twelve-month price targets point to further upside, with the average target at $284.29, implying a potential gain of about 19% from the stock’s most recent price near $238.
The most optimistic forecast sees AMD climbing as high as $377, while the lowest target stands at $210, reflecting a wide range of expectations tied to execution and broader market conditions.
Featured image via Shutterstock
