Chip stocks are having a moment, and KeyBanc just poured gasoline on it.
Intel $INTC ( ▲ 7.33% ) jumped early Tuesday to a new 52-week high after KeyBanc upgraded the stock to Overweight and slapped a $60 price target on it, implying roughly 25% upside. At the same time, the firm also upgraded Advanced Micro Devices $AMD to Overweight with a $270 target, around 23% upside from current levels.
KeyBanc’s Core Call: Server CPUs Are Basically Sold Out
KeyBanc analyst John Vinh says the boom in AI infrastructure is pulling demand forward hard, to the point where both Intel and AMD appear to be largely sold out of server CPUs for the year.
For Intel specifically, KeyBanc says checks indicate:
Intel is almost sold out for 2026 server CPU supply
the company is considering a 10% to 15% average selling price increase
That’s the kind of sentence analysts love because it screams: tight supply + pricing power.
Intel’s Foundry Narrative Is Getting More Credible
KeyBanc also sounded more optimistic on Intel’s manufacturing roadmap, especially 18A.
Vinh does not think Intel’s 18A process will dethrone Taiwan Semiconductor Manufacturing as the industry leader, but he does believe it could make Intel the #2 advanced foundry supplier, ahead of Samsung.
He cited progress on 18A yields, reportedly improving to over 60%, as a key reason for the confidence shift.
Apple Might Be an Intel Foundry Customer
One of the spiciest parts of the note: KeyBanc believes Apple $AAPL may have become a customer of Intel’s foundry business.
The claim is that Intel could manufacture:
low-end processors for MacBooks and iPads, potentially starting in 2027
and Intel may also be in discussions with Apple about using its next-gen 14A process for low-end iPhone A-series processors as far out as 2029
If even part of this is true, it would be a major credibility win for Intel Foundry.
AMD: 50% Server CPU Growth + Massive AI GPU Ramp
For AMD, KeyBanc is calling for a monster year:
server CPU revenue growth of at least 50%
similar pricing power dynamics as Intel
But the real fireworks are on the GPU side.
KeyBanc expects AMD’s MI355 and MI455 GPUs to drive $14B to $15B in annual AI revenue, citing signs of:
~200K MI355 GPUs in 1H 2026
a significant MI455 ramp in 2H 2026
290K to 300K MI455 units targeted for AMD’s rack-scale “Helios” solution
Bottom line: KeyBanc is basically arguing the AI buildout is creating a sold-out server market, restoring pricing power, and turning Intel $INTC ( ▲ 7.33% ) and AMD $AMD ( ▲ 6.39% ) into primary beneficiaries of the next leg of infrastructure spending.