AMD Stock Jumps. Why This Analyst Sees 28% Upside.

Dow Jones00:52

Advanced Micro Devices got a big vote of confidence Tuesday as the artificial-intelligence trade was getting back in gear.

KeyBanc Capital Markets analyst John Vinh, in a research note on the semiconductor sector, included a price target hike for AMD to $725 from $530. That increase represents about 28% upside from current trading levels.

The firm maintained its Overweight rating on the chip stock, with the analyst writing KeyBanc remains "positive" on the shares.

Advanced Micro Devices stock got an immediate jolt from the price hike, rising 6% to $566.44. Fellow chip stocks Intel, Micron Technology, and Nvidia also advanced as investors piled back into chip makers, which took a beating on Monday.

At last check, AMD had a market capitalization of $894.9 billion on Tuesday. AMD shares have soared 156% this year and have gained 253% over the past 12 months, driven higher mostly by demand for the company's AI-optimized central processing units, or CPUs, and Wall Street doesn't expect demand to lessen soon.

Vinh wrote that the analyst's recent trip to Asia reinforced that strong AI data center demand is driving chip momentum through strong bookings, the persistent memory shortages, higher memory prices, tighter supply, and increased production across PCs and smartphones.

Vinh noted that AMD has been able to source incremental capacity for server CPUs with units this year expected to grow about 15% to 20%. The firm expects AMD capacity in 2027 to support unit growth more than 50%.

Vinh also forecasts that AMD will see AI graphics processing unit, or GPU, revenue of $16.8 billion in 2026 and $48.5 billion in 2027.

While AI stocks took a hit Monday, shares bounced back Tuesday and KeyBanc certainly doesn't see any dents in the overall demand for the services that the highflying AI stocks provide.

Write to Kit Norton at kit.norton@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

July 14, 2026 12:52 ET (16:52 GMT)

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AMD Stock Jumps. Why This Analyst Sees 28% Upside.

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