Intel and Advanced Micro Devices (AMD) saw their shares rise in premarket trading on Tuesday, gaining 3.2% and 1.6% respectively. The increase followed KeyBanc Capital Markets upgrading its rating for both chipmakers from "Sector Weight" to "Overweight," citing that their server CPUs for 2026 are essentially sold out.

Analyst John Vinh highlighted that Intel has made significant progress, noting that "the yield for its 18A process technology has improved to over 60%."

KeyBanc set a price target of $60 for Intel, which represents a 36% premium to its most recent closing price.

Among analysts tracked by Bloomberg, Intel currently holds 8 buy ratings, 34 hold ratings, and 9 sell ratings, with an average price target of $39.21.

Vinh also pointed out that demand for AMD's MI355 and supply of its MI455 will support the company's projected AI revenue of $140 billion to $150 billion for this year.

A price target of $270 was set for AMD, indicating a 30% upside from its latest closing price.

For AMD, Bloomberg data shows 55 buy ratings, 12 hold ratings, and just 1 sell rating among analysts, with an average price target of $289.87.