This Analyst Says Advanced Micro Devices Will Soar 30% in 2026. Here's Why It's Time to Buy.

"Advanced Micro Devices ( ) stock climbed 78% in 2025, driven by growing adoption of its artificial intelligence (AI) accelerators and expectations for next-generation products. The company's Instinct MI300 series gained market share in data centers, competing against Nvidia ( NASDAQ:NVDA ). At CES 2026 earlier this month, AMD showcased advancements like the Helios AI platform and previews of future chips, signaling it was continuing to innovate and not rest on its laurels."

"This morning, KeyBanc analyst John Vinh upgraded AMD to Overweight with a $270 per share price target, implying 30% upside from yesterday's closing price, citing sold-out server CPUs and strong hyperscaler demand. He forecasts at least 50% growth in AMD's server CPU business and $14 billion to $15 billion in AI revenue for 2026. With these drivers pushing it forward, AMD has significant tailwinds that may propel shares beyond a mere 30% gain."

"KeyBanc's note followed an Asia supply-chain trip revealing robust demand for AMD's AI and data-center products. The firm noted AMD's server CPUs are nearly sold out for 2026, prompting a potential 10% to 15% increase in average selling prices in the first quarter. This tightness stems from hyperscalers ramping up AI infrastructure investments, who are projected to spend over $600 billion in capital expenditures (capex) in 2026, a 36% increase from 2025, primarily on AI infrastructure."

Advanced Micro Devices experienced a 78% stock rise in 2025 fueled by adoption of AI accelerators and anticipation of next-generation products. The Instinct MI300 series gained data-center share against Nvidia, and CES 2026 highlighted the Helios AI platform and future chip previews. KeyBanc upgraded AMD to Overweight with a $270 target, citing nearly sold-out server CPUs and strong hyperscaler demand. Forecasts include at least 50% year-over-year server CPU revenue growth for 2026, $14–15 billion in AI revenue, potential 10–15% first-quarter ASP increases, and raised EPS estimates of $4.01 for 2025 and $7.93 for 2026. Hyperscaler capex is projected above $600 billion in 2026.

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