AMD and Nvidia shares will rise as the two chip companies benefit from promising secular growth technology trends, according to a Wall Street firm.

Cowen initiated coverage on AMD shares with an outperform rating, predicting market share gains for the company's server chips.

"While AMD server sales have taken several quarters to materially ramp, we anticipate an inflection during 2H18 when OEM sales should complement cloud growth," analyst Matthew Ramsay said in a note to clients Thursday. "We remain confident the impressive roster of cloud and OEM engagements including Dell, HP, Lenovo, Baidu, Microsoft Azure, Tencent, JD.com, Cray, and others will yield strong growth."