KeyBanc analyst John Vinh reiterated an Overweight rating and $725.00 price target on AMD (NASDAQ: AMD).

The analyst commented: "We expect AMD to post better results and higher guidance, driven by continued strength in server CPU and AI demand, as agentic AI is driving outsized demand with AMD well positioned as a beneficiary. For servers, demand remains strong, supported by hyperscaler CPU refreshes, increasing AI inferencing/agentic workloads requiring a higher CPU intensity ratio, and ongoing supply improvements with AMD now positioned to support 15-20% unit growth in 2026 due to order cuts from MTK on TSMC N4 smartphone. AMD aims for >50% server CPU unit growth in 2027 on greater wafer/CoWoS supply. On AI, we continue to see a constructive setup as MI455 volume ramps in 2H26 (GPU ramp 3Q, rack ramp 4Q), with AMD’s CoWoS supply increased from 80K to 90K for 2026, going up to 130K (+44%) in 2027. We are looking for AMD to report better 2Q26 results and higher 3Q26 guidance. Our 2Q26 rev/EPS estimates are $11.6B/$1.72 vs. consensus estimates of $11.3B/$1.61, and our 3Q26 rev/EPS ests are $13.0B/$1.89 vs. cons ests of $12.5B/$1.87. Street sentiment on the name is positive as AMD is one of the primary beneficiaries of outsized server CPU demand, and bulls are encouraged by AI progress on Helios. We expect investors will be focused on: 1) production timeline on MI455/Helios and AI rev trajectory for ’26/’27; 2) updates on traditional server supply/demand conditions; 3) impact of memory price increases on PC demand; 4) indications of further CPU price increases."

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Shares of AMD closed at $495.76 yesterday.