Shares of Advanced Micro Devices Inc. (AMD) jumped over 6% on Monday, reversing some of their recent losses after a team of analysts released a bullish note suggesting that expectations for the chipmaker are “more reasonable” now than earlier in the year.

AMD stock is down 3.4% year-to-date (YTD), compared to the S&P 500’s 19.8% gain and the Philadelphia Semiconductor Index’s 40.8% increase over the same period. (See also: AMD Tanks on Forecasts of 1st Revenue Drop in 7 Qs.)

Macquarie analyst Srini Pajjuri raised his rating on shares of the semiconductor manufacturer from underperform to neutral, writing that after underperforming the market this year, the stock can reflect both gains for its Epyc chip for servers and the “strategic value” of its intellectual property. The analyst also increased his price target from $10 to $11, expecting the stock to trade just over flat through the next 12 months.

Revenue Growth Despite Headwinds

While Pajjuri noted downside risk from “headwinds” in the cryptocurrency market and foresees AMD only gaining moderately in the PC and graphics processing units (GPUs) space, he is more optimistic on the company’s other business segments. The Macquarie analyst highlighted opportunities for growth in average selling prices (ASP) and a recent partnership with Intel Corp. (INTC). “Overall, we believe PC/GPU revenue can grow at a high-single digit pace in 2018 despite potential crypto-related headwinds,” said Pajjuri.

AMD’s server business may also benefit from “encouraging” arrangements with Microsoft Corp. (MSFT), Baidu Inc. (BIDU) and Hewlett Packard Enterprise Co. (HPE) over the long run, wrote Pajjuri, who is more upbeat on AMD’s Epyc processor.

Macquarie noted that AMD stock, trading at 24 times calendar year 2017 P/E, is not inexpensive but trades at an over 30% discount to Intel on an enterprise-value-to-sales (EV/Sales) basis. (See also: Morgan Stanley: AMD Cryptocurrency Chip Market to Drop By 50%.)

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