KeyBanc Upgrades Intel and AMD on Surging AI-Driven Server CPU Demand
KeyBanc Capital Markets delivered a bullish upgrade for semiconductor giants Intel and AMD on January 13, 2026, shifting both to Overweight ratings. The MOVE reflects exploding demand for server processors as AI infrastructure deployments accelerate globally.
Intel's server CPU inventory is nearly depleted for 2026, prompting consideration of 10-15% price hikes. Shares surged 7.3% to $47.29, a 52-week high, with KeyBanc's $60 target suggesting 27% upside. AMD received a $270 target amid projections for 50% server revenue growth and $14-15B in AI GPU sales.
The 18A manufacturing breakthrough - yielding over 60% - positions Intel as potential foundry leader behind TSMC. Both chipmakers stand to capitalize on the trillion-dollar AI infrastructure buildout, with data centers racing to secure compute capacity.