The analyst predicts AMD will generate strong growth in its laptop segment. Photograph by Chris Ried

stock can go much higher even after its big rally, Cowen argues, due to the chip maker’s potential share gains in the notebook market. Its valuation, however, has the firm’s analyst “nervous.”

AMD (ticker: AMD) makes processors that act as the main computing brains for personal computers, servers, and graphics cards. The company’s stock rose 148% last year—the best performer in the entire S&P 500 index for 2019, according to FactSet. The shares were already up another 11% this year through Friday.