Advanced Micro Devices upgraded at KeyBanc on data center growth
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Advanced Micro Devices (NASDAQ:AMD) shares are higher as KeyBanc Capital Markets upgraded the stock and boosted its price target, noting the Lisa Su-led company is poised to benefit from "robust high teens cloud data center growth in 2022."

Analyst John Vinh boosted his rating to overweight and price target to $155, adding that AMD (AMD) should "meaningfully outpace industry growth" given gains it has made at Microsoft (NASDAQ:MSFT) and Meta Platforms (NASDAQ:FB). Additionally, AMD was constrained over the past year, but Vinh said he has "greater confidence" AMD has enough supply to keep growing.
"One of the most compelling data center growth stories, given its exposure to cloud and continued market share gains," Vinh wrote in the note to clients. "We view AMD as one of the most compelling server growth stories in the semiconductor industry, given its outsized exposure to CSPs vs. enterprise. Additionally, we expect AMD to significantly outpace cloud industry growth in 2022 of high teens, as we expect continued market share gains."
AMD (AMD) shares are up more than 1% to $134.10 on back of the upgrade. Over the past year, AMD shares have gained more than 35%.
In addition, Vinh believes that AMD's (AMD) pending acquisition of Xilinx (NASDAQ:XLNX) will position the company well for the transition to heterogeneous compute architectures. Xilinx, which already has a "competitive" CPU and GPU accelerator, will also give the combined company a bigger footprint in field-programmable gate arrays with its integrated platforms.
Last week, Bank of America said both AMD (AMD) and Nvidia (NASDAQ:NVDA)
have continued to show strength in gaming.