Looking for a reason to buy shares of Advanced Micro Devices (NASDAQ:AMD)? How about three reasons, courtesy of Cowen’s top analyst Matt Ramsay. Ramsay initiated coverage of AMD’s stock with an Outperform rating and price target of $18, which implies an upside of nearly 40% from current levels.

The analyst highlighted three factors to support his Outperform thesis:

Looking at the medium – term future PC, GPU, and server chipset road maps from AMD, we believe 2H18 will bring the introduction of 7nm products from TSMC followed by a full year of 7nm products across the portfolio in 2019. By taking the roadmap from 14nm down to 7nm in the next generation, we believe AMD’s products can have much higher performance and performance/watt versus today’s 14nm offerings.

While server sales have taken several quarters to materially ramp, we anticipate an inflection during 2H18 when OEM sales should complement cloud growth and 2nd -generation 7nm samples to partners should galvanize franchise momentum. Further, we believe AMD’s road map is capable of generating $1B+ in high-margin server sales annually by 2020, and management’s targets of midsingle digit unit server share exiting 2018 and 10% long-term are realistic as 7nm Rome and 7nm+ Milan products compete with Intel’s 10nm chips.

We anticipate a solid ramp of Ryzen Mobile OEM notebook business in 1H18 will be followed by strong 2nd-Gen 12nm Ryzen desktop business during 2H18 leading to 30%+ revenue growth in 2018 versus mid-20%’s guidance, including near 50% Y/Y growth for the 2nd -straight year in the CG segment despite declining crypto currency sales in 2018.

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, 5-star analyst Matt Ramsay has a yearly average return of 24.4% and a 64% success rate. Ramsay has a 38.4% average return when recommending AMD, and is ranked #97 out of 4801 analysts.

The rest of Wall Street largely buys into what this chip giant has to offer, as TipRanks analytics reveal AMD as a Buy. Out of 17 analysts polled in the last 3 months, 9 are bullish on Advanced Micro Devices stock, 6 are sidelined, and only 2 are bearish. With a return potential of 16%, the stock’s consensus target price stands at $15.06.