This article first appeared on GuruFocus.
Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) shares rose about 3% on Monday after KeyBanc Capital Markets raised its outlook for both chipmakers on signs of firmer server processor demand.
For Intel, analyst John Vinh said pricing is improving for both server and client CPUs after recent checks in Asia. He also said manufacturing yields at Intel’s 18A node are continuing to improve, while the company may have won design work for Apple’s lower-end M-series chips used in MacBook and iPad devices. Vinh also pointed to Google’s use of EMIB-T technology in a tensor processing unit that could carry $4 billion to $5 billion in revenue.
KeyBanc kept Intel at Overweight and raised its target to $70 from $65. The stock has been under pressure this year as investors watch its turnaround plans and manufacturing progress.
For AMD, Vinh said chip-on-wafer substrate supply from Taiwan Semiconductor Manufacturing may rise to 80,000 interposers in 2026 from 70,000 in 2025. He also lifted his AI GPU outlook to about $16.5 billion and kept AMD at Overweight with a $330 target.
