AMD, Intel Pop After a Pair of Upgrades. Here’s Why One Wall Street Bull Likes the Stocks

A pair of chipmakers were among the top performers in the S&P 500 and Nasdaq Tuesday after the stocks won fresh bullish calls on Wall Street.

Shares of Intel (INTC) were up nearly 9%, and Advanced Micro Devices (AMD) surged over 6% in recent trading even as broader markets declined, after KeyBanc analysts upgraded the stocks to “overweight,” citing stronger-than-expected demand for the chipmakers’ AI products.

The analysts said their research suggests both chipmakers have “largely sold out” of their expected 2026 capacity for server CPUs used in data centers. Both are also considering raising their prices by 10% to 15% thanks to the overwhelming demand, the analysts said.

The analysts raised their estimates for how much Intel and AMD could ship this year, and said that their evaluation of Intel’s new “18A” production method was “enough to convince us it could credibly be the #2 foundry supplier in the industry,” behind Taiwan Semiconductor Manufacturing Co. (TSM).

However, KeyBanc’s support for Intel stands out on Wall Street. It’s the only firm tracked by Visible Alpha recommending buying the shares, compared to five “hold” ratings and two “sell” ratings. KeyBanc’s Street-high target of $60, suggesting 36% upside from Monday’s close, is also well above the consensus at $41.

Analysts are more widely bullish on AMD, with the 10 current ratings tracked by Visible Alpha split between seven “buy” and three “hold” recommendations. KeyBanc’s price target of $270, implying a rise of 30% from Monday’s close, is roughly in line with the analyst mean.