On January 13, Advanced Micro Devices shares climbed 6.36% after KeyBanc analyst John Vinh upgraded the company to Overweight and raised his 12-month price target to $270, implying 22% upside from recent levels. The firm’s supply-chain checks revealed that AMD’s next-generation server CPUs are nearly sold out for 2026, prompting expectations of a 10% to 15% increase in average selling prices in the coming quarter. Bank of America subsequently previewed a potential beat-and-raise in AMD’s January 22 earnings report, citing booming data center orders.

KeyBanc forecasts at least 50% year-over-year growth in AMD’s server CPU revenue in 2026, driven by rapid adoption of fifth-generation EPYC Turin processors. In the third quarter of 2025, these chips accounted for more than half of total EPYC revenue, and hyperscale customers are poised to increase AI infrastructure spending by over 35% this year, representing more than $600 billion in capital expenditures across the industry.

Analysts project that sales of AMD’s Instinct MI300 and MI355 series accelerators will generate between $14 billion and $15 billion in revenue during 2026. This outlook reflects strong orders for the new Helios AI platform, which integrates MI455 accelerators with Zen 6 architecture CPUs, and a significant ramp in hyperscaler deployments aimed at training trillion-parameter models over the next 12 months.

At CES 2026, AMD unveiled its Helios rack-scale platform featuring up to 72 Instinct MI455X accelerators, 2nm Zen 6 EPYC Venice CPUs and high-performance NICs. The system delivers approximately 3 exaflops of AI compute per rack and leverages an open-source software stack to optimize memory bandwidth and cost efficiency. AMD also previewed the Instinct MI500 series for 2027, promising multi-hundred-fold performance gains through advanced chiplet design and HBM4E memory.