NEW YORK, Jan 13, 2026, 21:30 EST
- Shares of Intel and AMD climbed following KeyBanc’s upgrade, which highlighted AI-driven server demand that outpaced expectations.
- KeyBanc’s checks indicate that both firms have mostly sold through their anticipated 2026 server-CPU capacity and might push for price increases in the 10%-15% range.
- The analyst highlighted progress in Intel’s 18A manufacturing and raised AMD’s 2026 AI-chip revenue forecasts.
Intel (INTC.O) and Advanced Micro Devices (AMD.O) jumped on Tuesday following upgrades from KeyBanc Capital Markets, which highlighted that demand for AI-driven data-center processors is outpacing supply. Intel surged close to 9%, while AMD added over 6%. (Investopedia)
The call arrives as investors weigh if the largest cloud firms continue to pour money into AI infrastructure or if spending pulls back following a steep rally in chip stocks. If the “sold out” narrative holds, the focus moves away from hype and onto supply constraints — and pricing pressure.
KeyBanc’s John Vinh has bumped Intel and AMD up to “overweight,” pegging their price targets at $60 and $270. He noted both firms seem on track to sell out their anticipated 2026 server-CPU supply, which could let them hike prices. (Barron’s)
Vinh said he expects “outsized” demand from hyperscalers — the largest cloud operators — to boost Intel’s Data Center and AI division. He added that Intel is “almost sold out” of server CPUs, with management considering a 10% to 15% hike in average selling prices. He also noted “over 60%” yields on Intel’s 18A process — a measure of the usable chips per silicon wafer — and mentioned Apple could turn to Intel’s foundry for some lower-end chips later this decade. (24/7 Wall St.)
Vinh turned more optimistic on AMD, reversing his earlier caution about a potential gap between the MI355 and the MI455-based Helios platform—a rack-scale system that integrates chips across entire server racks. He forecasts AMD’s server-CPU business will grow by at least 50% in 2026, with AI-chip revenue hitting $14 billion to $15 billion. Shipments of the MI355 are expected in the first half, followed by a bigger MI455 rollout in the second. (MarketWatch)
The upgrades reflect a growing belief that basic server CPUs — the central processors handling general data center tasks — are becoming scarce once more as AI deployments extend beyond the spotlight on graphics chips. This shift brings Intel and AMD back into focus, even though Nvidia (NVDA.O) continues to lead the high-end AI accelerator market.
For Intel, the foundry business is nearly as crucial as its server segment. The company is working to show it can produce cutting-edge chips consistently and attract outside clients, directly challenging Taiwan Semiconductor Manufacturing Co and Samsung’s contract manufacturing operations.
KeyBanc’s note suggested the near-term gains might hinge on pricing power. Margins can jump fast if average selling prices rise—provided customers go along and competitors don’t slash prices to compete.
The bet hinges on multiple factors. AI data-center spending could drop sharply if cloud providers cut their capital expenditures. Meanwhile, Intel must prove its 18A yield improvements hold steady in volume production and lead to ongoing foundry contracts, not just isolated tests.
AMD, meanwhile, faces pressure to hit its MI355 and MI455 production targets on time and prove to customers that its systems justify large-scale deployment. A delay could quickly hit orders, given that both stocks are already priced for tight supply.
Source link: https://www.cnbc.com/2026/01/13/intel-and-amd-get-upgrades-at-keybanc-thanks-to-strong-server-demand-for-ai.html
