Advanced Micro Devices (AMD) was added to the NASDAQ-100 index after yesterday’s close. The index tracks the NASDAQ’s 100 largest non-financial stocks. Included in this group is the tech heavyweights you’d expect: Apple, Alphabet, Amazon and Microsoft, just to name a few. The move will take effect next Monday (the 24th) and is largely symbolic. But RBC Capital analyst Mitch Steves, who reiterates his Outperform rating and $34 price target on the stock, believes the move could “act as a small near-term positive.” (To watch Steves’ track record, click here)

Steves says the news does not change “the long-term or near-term fundamentals of the AMD story,” but he does think the stock will “trade up either (Tuesday) or on the day of the rebalance (Friday).” It’s a small piece of news, especially for a company that is battling a slowing components market, but the analyst thinks it could provide a small bump to the stock.

Aside from the news, Steves thinks the company has long-term growth prospects in its gaming and server segments. While the analyst says the cryptocurrency “downdraft” has created challenges for the company in the short-term, his long-term view on the segment “remains unchanged and see gaming as a 2H story.” The analyst sees gaming as a growth opportunity; as the complexity of games increases, he says, demand for GPUs should increase, too.

On the server side, Steves says server ASPs “were the most emailed topic over the past month.” The analyst believes AMD ASP will come in “around $5,400” but investors expect numbers anywhere from $5,000 to $6,000. Steves says the server opportunity is over $10 billion, with each additional 4 million units contributing to $2 billion in “high margin revenue.”

Overall, Wall Street is optimistic about AMD stock over the next year. TipRanks tracking of 24 analysts shows a consensus Moderate Buy rating, with an average price target of $26.05, representing a 32% upside from current levels. Of the 24 analysts, 12 recommend Buy, 10 recommend Hold and 2 recommend Sell. (See AMD’s price targets and analyst ratings on TipRanks)