AMD(Advanced Micro Devices) is set to announce its Q4 and full fiscal year 2025 report on February 3, 2026, after the market close. Ahead of this, the semiconductor company’s shares are reacting to new research from analysts at KeyBanc.

The company, under the leadership of CEO Lisa Su, has grown considerably, rivaling PC processing stalwart Intel and AI chip giant Nvidia. Demand from clients, including Microsoft, Dell, Apple, and OpenAI, has helped lift AMD’s stock price by 89% over the past year. 

On Tuesday, January 13, AMD gained 6.4% after KeyBanc upgraded its rating to “Overweight” from “Sector Weight,” with a price target of $270. Ahead of AMD’s Q4 earnings report next month, KeyBanc notes that AMD holds a dominant position in the data center market. 

Analysts noted that the company is largely sold out of server CPUs for 2026 due to a massive surge in demand from hyperscalers. The demand is high enough for AMD to potentially consider increasing the price by 10%-15% in the first quarter, analyst John Vinh notes.

KeyBanc expects AMD’s AI-specific revenues to reach $14 billion to $15 billion in 2026, driven by demand for the MI355 and the upcoming supply of MI455 accelerators. 

AMD’s stock is up 3.6% year-to-date.

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Analyzing the foundation: AMD’s Q3 performance

This momentum is built on a record Q3 earnings, where AMD posted $9.2 billion in revenue, a 36% year-over-year increase. The company delivered diluted EPS of $1.20, beating Wall Street expectations. The performance was driven primarily by its data center segment, which increased 22% year-over-year to $4.3 billion. 

A major reason for the growth was strong demand for its 5th Gen AMD EPYC processors and AMD Instinct MI350 Series GPUs.

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It also saw client and gaming segment revenue increase by 73% year-over-year to $4 billion, driven by record sales of its Ryzen processors. 

AMD expands Ryzen processors with AI

While competing in the data center market, AMD is also expanding its AI portfolio with its new x86 processor, the AMD Ryzen AI Embedded processor, designed to excel in AI-driven applications at the edge. 

The new P100 and X100 Series processors will be designed to bring high-performance x86 compute and AI acceleration to autonomous systems, automotive digital cockpits, and humanoid robotics. 

Investors are now looking forward to the Q4 earnings report to see if the financial investments align with its technological roadmap. Bank of America also echoes KeyBanc’s optimism, predicting a beat and raise near term, citing growing data center exposure and strong product execution. 

BofA notes increased visibility on the MI400 Series and ‘Helios’ rack. A major catalyst is OpenAI’s 1 gigawatt contractual deployment and Oracle’s 500 megawatt installation, which BofA estimates could represent over $20 billion in net revenue for AMD.

Related: Nvidia, AMD in focus ahead of key event