AMD Gets KeyBanc Upgrade as Hyperscaler Demand Accelerates

Core Viewpoint - Advanced Micro Devices, Inc. (AMD) is experiencing strong demand in the hyperscaler market, leading to an upgrade from KeyBanc analyst John Vinh to Overweight with a price target of $270.00 [1] Group 1: Demand and Supply Dynamics - KeyBanc previously downgraded AMD due to concerns about a potential demand gap between MI355 and the upcoming MI455 platform, but recent supply chain checks have alleviated these worries [2] - Supply chain data indicates that AMD is nearly sold out of server CPUs for 2026 due to the surge in hyperscaler demand, with a potential price increase of 10-15% expected in Q1 2026 [3] Group 2: Revenue Projections - KeyBanc estimates that AMD's server CPU and AI GPU business will see significant growth, with AI revenues projected to reach $14-$15 billion this year [4] - Server CPU sales for AMD are expected to grow by at least 50% this year, with indications of 200,000 MI355 GPUs in the first half and a ramp-up of MI455 in the second half, targeting 290,000-300,000 units for the Helios solution [5]