New York, Jan 13, 2026, 4:03 PM EST — After-hours
- AMD shares climbed roughly 7% following KeyBanc’s upgrade to “overweight”
- The broker highlighted robust demand for server CPUs in data centers and the possibility of pricing leverage
- All eyes are on AMD’s Feb. 3 earnings to see if data center growth holds up
Shares of Advanced Micro Devices rose roughly 7% Tuesday, defying a weaker overall market. The jump came after KeyBanc upgraded the chipmaker, citing evidence that demand for data-center processors is outpacing supply.
This call is crucial as investors scramble to define what “AI infrastructure” spending will actually entail in 2026, and if chipmakers will keep pushing prices higher rather than just boosting volume. For AMD, this question hits right at its data center segment, where server CPUs—the core processors powering cloud computing—drive much of the profit.
KeyBanc raised AMD to “overweight,” signaling a buy, citing checks that show both AMD and Intel have “largely sold out” their projected 2026 server CPU capacity. The firm also noted that the companies are mulling price hikes of 10% to 15%, prompting KeyBanc to boost its AMD price target to $270. Investopedia
AMD climbed 7.0% to $222.24, hitting a peak of $223.07 earlier. Roughly 49.9 million shares swapped hands, surpassing its usual daily volume.
Intel shares jumped after the KeyBanc team upgraded the stock, sparking a wider shift back into big-cap chipmakers linked to cloud and AI expansion.
The jump followed investor reactions to December’s U.S. inflation figures and initial earnings reports from major banks, with hopes for rate cuts lingering but stock indexes showing mixed moves.
AMD’s upgrade fits with a theme it’s emphasized since CES earlier this month: a push to capture more of the AI data-center market, currently led by Nvidia. The company is focusing on newer accelerators designed for heavy training tasks.
The upside hinges on demand holding strong and supply remaining constrained. If cloud spending slows or customers resist price hikes, the margin narrative could crumble fast — and chip stocks typically punish even the slightest sign that order books are settling down.
Traders will also watch the broader semiconductor sector closely. Shifts in peers such as Nvidia and Taiwan Semiconductor often ripple through to AMD, particularly on days when the market treats “AI” stocks as one tightly linked group.
AMD’s fiscal fourth-quarter and full-year 2025 results drop on Feb. 3 after the market closes. Investors will be zeroed in on any fresh insights regarding data-center demand, pricing trends, and shipment volumes.
