Cowen is more optimistic on AMD's future gains in the server chip market after meetings with the company's chief executive.

The firm raised its price target for AMD shares to $25 from $21, predicting the chipmaker will report better-than-expected profits in 2019. The stock closed at $18.94 Friday.

On Thursday AMD shares rose 14 percent, a day after it reported better-than-expected second-quarter sales and earnings results.

"Following AMD's strong 2Q18 results and de-risked 2H18 outlook posted last Wed, we hosted CEO Dr. Lisa Su for meetings in NYC on Thurs.," analyst Matthew Ramsay said in a note to clients Monday. "Investor interest was high and the message was upbeat but still unsatisfied, as management is determined to capitalize on share gain opportunities in datacenter and client markets. Dr. Su's message was AMD is just getting started; we agree."