Semiconductor giants Intel and AMD are making waves in the stock market with their recent advancements and strategic positioning in the AI and manufacturing sectors. Both companies have seen significant stock surges, fueled by upgrades from major analyst firms and a booming demand for AI-driven technology.
Intel’s Market Momentum
On Tuesday, Intel’s stock jumped 7.3% to hit $47.29—a 52-week high—after KeyBanc upgraded its shares to an ‘Overweight’ rating with a $60 target price. The chipmaking giant has nearly sold out its server CPU supply for 2026, which is driving the company’s consideration of a 10-15% price increase on chips. These specific processors cater to data centers running AI workloads and cloud computing, sectors experiencing exponential growth due to the AI boom.
Moreover, Intel’s cutting-edge 18A manufacturing process is yielding rates exceeding 60%. This improvement could position Intel as the world’s second-largest foundry, surpassing Samsung but still trailing Taiwan Semiconductor Manufacturing Company (TSMC). A noteworthy collaboration is in the works with Apple, which plans to use Intel’s facilities for lower-end MacBook and iPad processors starting in 2027, marking a major milestone in Intel’s strategy to open its manufacturing capacity to external customers.
AMD: Riding the AI Wave
AMD also gained a boost from KeyBanc’s upgrade on the same day, surging 6.4% to close at $220.97. The firm set a price target of $270, reflecting strong optimism about AMD’s prospects. KeyBanc projects a 50% increase in AMD’s server CPU revenue, alongside $14-15 billion in revenue from AI GPU sales in 2026. This momentum is propelled by AMD’s latest MI355 and MI455 GPUs, forecasted to ship over 500,000 units in 2026 alone, catering to the growing demand for AI hardware solutions.
With AMD and Intel benefiting significantly from the increased focus on AI applications, the semiconductor landscape is evolving rapidly. Both companies are leveraging their technological advancements to address the growing demand for data center infrastructure and AI computing power.
Why AI is Driving Semiconductor Demand
The rise of AI applications—from generative AI tools to advanced machine learning models—has created an unprecedented demand for high-performing chips to support data-intensive workflows. Businesses racing to scale their AI infrastructure are turning to firms like Intel and AMD for reliable, scalable computing solutions. Additionally, institutional investors, including Vanguard’s Total Stock Market Index Fund, have increased their positions in Intel, further signaling confidence in these market leaders.
A Recommended Product for Tech Investors
If you’re an investor looking to stay ahead in this rapidly growing industry, consider AMD’s MI Pro Series GPUs for high-performance AI and data processing. This product line provides cutting-edge technology aimed at tackling the most complex machine learning workflows, making it an excellent choice for developers and businesses alike.
Whether you’re following the stock market or exploring how AI technology is transforming industries, Intel and AMD remain pivotal players to watch in the coming years.
