AMD shares closed up 1.2 percent Thursday.
Richard raised his price target to $30 from $26 for AMD’s stock, representing 7 percent downside to Wednesday’s close.
The analyst predicts AMD will gain share in the server chip market against Intel, but he expects Intel to eventually “get its act together” in terms of technology.
“We believe estimates will very likely migrate higher, however we believe the real world takes longer than investors are thinking, in our opinion,” he said.
AMD’s stock is significantly outperforming the market this year. Its shares are up 213 percent year to date through Wednesday versus the S&P 500’s 9 percent gain. The company’s stock is the top-performing name in the S&P 500 this year.
The company did not immediately respond to a request for comment.