Intel and Advanced Micro Devices were gaining early on Monday. It's set to be a good year for makers of central processing units, according to KeyBanc.

Analyst John Vinh raised his rating on both Intel and AMD to Overweight, noting the companies appear to have largely sold out their server CPUs for this year amid the boom in artificial-intelligence infrastructure.

Intel got a price target of $60 from the KeyBanc analyst. Shares were up 3.3% at $45.50 in premarket trading.

"Our checks indicate Intel is almost sold out for the year in server CPU, and given the strength in demand, the company is considering a 10-15% ASP [average selling price] increase," Vinh wrote in a research note.

In addition, Vinh is positive on Intel's efforts to expand its chip-manufacturing operations. Although he doesn't believe the company's 18A manufacturing process is enough to challenge industry leader Taiwan Semiconductor Manufacturing, he argues it could lead Intel to take second spot as an advanced semiconductor manufacturer from Samsung Electronics.

"18A progress [is] enough to convince us it could credibly be the #2 foundry supplier in the industry ahead of Samsung. We are seeing significant progress being made on foundry with 18A yields improving to over 60%," wrote Vinh.

AMD got a price target of $270 from Vinh. The stock was up 1.5% at $210.88 in Monday's premarket.

The KeyBanc analyst argued AMD's revenue from server CPUs is set to grow at least 50% this year, with similar price increases to Intel. Meanwhile, sales of its MI355 and MI455 graphics-processing units will lead to annual AI revenue of between $14 billion and $15 billion.