New York, July 14, 2026, 13:13 (EDT)
- KeyBanc lifted its AMD price target to $725, up from $530, which points to a roughly $1.20 trillion market cap based on the current share count.
- The firm is calling for AMD’s AI-GPU revenue to jump 189% to $48.5 billion in 2027, up from $16.8 billion this year.
- Q2 revenue consensus sits roughly 1% over AMD’s guidance midpoint, so investors may focus more on the company’s outlook when it reports on August 4.
Advanced Micro Devices, Inc. NASDAQ:AMD shares jumped 3.9% Tuesday after KeyBanc Capital Markets hiked its price target to $725, but the bullish note leans on a much bigger outlook than just today’s move. Analyst John Vinh is calling for $48.5 billion in AI GPU revenue by 2027—almost triple his 2026 estimate of $16.8 billion for chips that train and run models.
AMD was trading at $555.01 as of 12:57 p.m. EDT, putting its market cap at $916.1 billion. At the current number of shares, AMD bumps up against the $1 trillion level around $606—roughly 9% higher than where it was priced Tuesday. Bank of America Corp. NYSE:BAC analyst Vivek Arya now sees the stock going to $620, clearing the trillion-dollar mark. KeyBanc’s price target would send AMD to nearly $1.20 trillion. The current raft of upgrades has turned into a valuation event.
Tuesday’s action wasn’t only about company news. NVIDIA Corp. NASDAQ:NVDA climbed 3.5% and Intel Corp. NASDAQ:INTC added 3.4%. AMD pulled back from a top of $573.85, giving up close to half of its biggest gain. Most of the strength in chips came from the group move.
Wall Street has boosted price targets for Advanced Micro Devices over two sessions. Arya pushed Bank of America’s number up to $620 from $550. TD Cowen’s Joshua Buchalter went to $675 from $600. KeyBanc’s Vinh raised his call to $725 from $530.
| Research firm | New target (prior) | Upside from $555.01 | Implied market value | Implied value / 2027 sales |
|---|---|---|---|---|
| Bank of America | $620, up from $550 | 11.7% | $1.02 trillion | 13.2x |
| TD Cowen | $675, was $600 | 21.6% | $1.11 trillion | 14.4x |
| KeyBanc | $725 from $530 | 30.6% | $1.20 trillion | 15.5x |
Figures based on AMD’s $916.1 billion market cap at 12:57 p.m. EDT and the 2027 revenue consensus at $77.24 billion.
The tough part is the KeyBanc revenue bridge. KeyBanc’s call for $48.5 billion in AI-GPU sales in 2027 is 40% bigger than AMD’s full $34.6 billion revenue expected for 2025, and it’s about 63% of current consensus for the company’s total 2027 revenue. This cross-up isn’t saying KeyBanc uses the same total, just that the big target leans heavily on how fast accelerators ramp. But the numbers come out different.
Near-term views are more muted. Wall Street sees second-quarter revenue at about $11.3 billion with adjusted earnings of $1.61 a share. AMD itself has guided for $11.2 billion in revenue, give or take $300 million, and an adjusted gross margin of 56%. Revenue consensus sits just 0.9% over the guidance midpoint. Bank of America is calling for a “beat and raise,” betting AMD tops estimates and lifts guidance, pointing to what it described as “exceptional” server demand. Timing is key. TheStreet Pro
Earnings forecasts have gone higher across the board. Stephen Guilfoyle, a columnist for TheStreet Pro, said 36 out of 40 analysts he follows have raised their AMD earnings targets since Q2 began. One analyst cut forecasts. Buchalter at TD Cowen lifted his price target, pointing to upcoming AI launches in late 2026 and steady CPU demand. The market has already baked in better numbers, so it’s about execution now.
AMD posted first-quarter revenue up 38% at $10.25 billion. Data Center sales surged 57% to $5.8 billion, making up 56% of total revenue. CEO Lisa Su called Data Center “the primary driver of our revenue and earnings growth” and said server growth should pick up with more supply coming. The stock’s valuation now moves well beyond just PC chips. Advanced Micro Devices, Inc.
Investors have two dates coming up: AMD’s Advancing AI event in San Francisco on July 22-23, and Q2 earnings on August 4. The event is expected to bring more detail on products, customers, and deployments. For the earnings, market focus is on whether supply constraints are turning into real revenue. Traders want something concrete.
But there’s not much margin for error. KeyBanc is looking for server-CPU units to jump 15%-20% in 2026 and has penciled in more than 50% capacity growth for 2027. That’s with memory shortages and tight supply chains still in the picture. If accelerators get delayed, customers hold back, or supply comes late, both the numbers and the stock could take a hit. At $725, AMD trades at about 15.5 times current consensus 2027 sales. The real risk isn’t just demand. It’s scaling up and delivering.
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