TLDR
- AMD stock rose Tuesday after receiving upgrades from top Wall Street analysts with price targets up to $270
- KeyBanc analyst John Vinh upgraded AMD to Buy rating, citing strong AI chip demand and sold-out 2026 CPUs
- Citi analyst Christopher Danely maintained Hold rating but set $260 price target, suggesting 25% upside potential
- AMD’s AI data center business shows strength with possible Q1 price increases due to high demand
- Wall Street consensus rating is Strong Buy with average price target of $283.66, representing 36.58% potential upside
AMD shares climbed Tuesday morning after two prominent analysts issued bullish assessments on the chipmaker. The moves come as demand for AI processors continues to drive semiconductor sales.
Advanced Micro Devices, Inc., AMD
KeyBanc analyst John Vinh upgraded AMD to Buy from Hold. He set a $270 price target on the stock. This implies a 30% upside from current levels.
Vinh pointed to strong fundamentals driving his upgrade. AMD’s 2026 CPU lineup is already mostly sold out. The analyst expects the company could raise prices in the first quarter.
Citi analyst Christopher Danely kept his Hold rating but maintained a $260 price target. This suggests a 25% potential gain. Both analysts hold five-star ratings on TipRanks.
The optimistic forecasts reflect AMD’s position in the AI market. The company supplies both CPUs and GPUs used in AI data centers. These products have seen surging demand through 2025.
AI Chip Shortages Drive Upgrade
KeyBanc’s Asia trip revealed tight supply conditions across the semiconductor industry. Memory shortages are affecting multiple markets. Hyperscalers are ordering AI chips at a rapid pace.
The firm also raised its outlook on other chip companies. Micron Technology received a price target boost to $450 from $325. KeyBanc noted the memory cycle will remain strong through mid-2027.
Broadcom saw positive revisions with CoWoS supply estimates jumping to 250,000 units from 190,000. The analyst expects OpenAI to become Broadcom’s sixth customer in Q1 2027.
Trading Activity and Recent Performance
AMD stock gained 3.41% in pre-market trading Tuesday. This followed a 2.22% increase the previous day. About 5 million shares traded before the bell, below the three-month average of 26.14 million.
The stock has dropped 3.02% year-to-date. However, shares remain up 78.9% over the past 12 months. The consumer business also shows strength with leaks pointing to a new Ryzen 9 Pro CPU release.
Wall Street’s consensus rating stands at Strong Buy. This comes from 28 Buy ratings and eight Hold ratings issued in the past three months. The average price target sits at $283.66, implying 36.58% upside potential.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
