Intel (INTC) and AMD (AMD) received upgrades to Overweight by KeyBanc as both chipmakers have mostly sold out of server CPUs for 2026 due to surging data center and artificial intelligence demand.
Shares for these companies had increased by 4% and 3.7%, respectively, during early trading on Tuesday. Over the past year, Intel has more than doubled, while AMD has climbed 77%.
“Our checks indicate INTC is almost sold out for the year in server CPU, and given the strength in demand, the Company is considering a 10-15% ASP increase,” said KeyBanc analysts John Vinh and Ryan Rosumny in an in-depth investor report.
KeyBanc also set a $60 price target on Intel. This price target approaches all-time highs Intel briefly experienced in 2021, 2020 and way back in 2000.
Intel’s 18A process has made enough strides that KeyBanc said it could now rank as the No. 2 foundry supplier in the industry, just ahead of Samsung (SSNLF).
“We are seeing significant progress being made on foundry, with 18A yields improving to over 60% and good enough to ramp Panther Lake,” Vinh and Rosumny said. “While not best in class, as TSMC (TSM) was at 70-80% when it launched 2nm, with INTC’s aspirations of being the #2 foundry supplier, 60%+ yield is significantly better than SF2 at Samsung Foundry, which we believe is less than 40%.”
What’s more, KeyBanc said Intel has landed a significant customer with Apple (AAPL), which will utilize 18A for lower-end M-series processors for MacBooks and iPads. These are expected to enter production in 2027. Apple is also considering the utilization of 14A for its lower-end A-series processors for iPhones beginning in 2029.
Several large-scale hyperscalers, such as Amazon Web Services (AMZN), Google (GOOG)(GOOGL) and Meta Platforms (META), are also eyeing Intel’s EMIB-T (embedded multi-dye interconnect bridge with through-silicon vias) advanced packaging technology for high-bandwidth memory to be used with ASICs as an alternative to TSMC’s CoWoS.
Meanwhile, AMD, which has a $270 price target from KeyBanc, has also nearly sold out of its server CPUs for the year.
“Our supply chain checks indicate the recent surge in hyperscaler demand has led to AMD to almost being completely sold out of server CPU in 2026 and is potentially considering a price increase of 10-15% in 1Q26,” Vinh and Rosumny said. “We estimate server CPU for AMD will grow at least 50% this year.”
KeyBanc believes AMD’s MI255 and MI455 can support AI-related revenues of $14B to $15B this year.
“Regarding AI GPUs, we’re seeing indications of 200K MI355 GPUs in the 1H and a significant ramp of MI455 in the 2H, of which 290K-300K is targeted for its rack scale solution Helios,” KeyBanc noted. “It remains unclear how many racks AMD will be able to ship; similar to Nvidia (NVDA), we expect AMD to rev rec significant amounts of MI455/Helios revenues as it sells in its components to its ODM partner ZT Systems.”