KeyBanc Capital Markets has upgraded both Intel and AMD to Overweight, pointing to surging demand from hyperscale data centers and tightening memory markets. Analyst John Vinh cited stronger-than-expected server CPU demand, with both chipmakers nearly sold out for 2026. Intel is reportedly considering a 10–15% price increase, while improvements in its 18A manufacturing process support optimism around Panther Lake ramp. The firm set a $60 price target for Intel.AMD, assigned a $270 target, is expected to see its server business grow over 50% this year.

AI-driven revenue, boosted by MI355 shipments and the MI455-powered Helios platform, could hit $14–$15 billion. KeyBanc noted memory shortages are pressuring PC sales but boosting gross margins for AMD. Intel’s foundry progress also stood out, with early wins including Apple for low-end M-series chips.

The upgrades reflect how hyperscaler spending is reshaping supply chains. Both companies stand to gain as cloud providers invest heavily in AI infrastructure, driving demand for high-performance processors.