An upgrade to neutral was all it took to send shares of Advanced Micro Devices Inc. surging in active trade Monday.

Macquarie analyst Srini Pajjuri, who turned bearish on AMD’s AMD, -3.82% stock in May, wrote Monday that expectations for the company now look more reasonable. While he predicts headwinds for AMD’s cryptocurrency business going forward, he also sees opportunities for the company to boost average selling prices (ASPs) for its graphics processor units (GPUs) and generate some momentum for its server business.

In upgrading AMD’s stock, Pajjuri raised his price target on shares to $11, from $10. AMD’s stock rose 6.7% in Monday trade, to close just shy of the new target. The stock was the second biggest gainer in the S&P 500 index, and was the third-most active on the Nasdaq exchange with volume of 62.8 million shares.

AMD’s Vega chip is used in Apple Inc.’s AAPL, -4.19% new iMac Pro, and the firm is working with Intel Corp. INTC, -2.26% on a new laptop chip to power gaming notebooks. Pajjuri believes these arrangements can help AMD boost ASPs, noting that while the company may have lost share of the GPU market in units during the latest quarter, he believes the company picked up revenue share. In general, he sees the company benefitting from a shift toward more expensive products.

Looking forward, he thinks that PC and GPU revenue can rise “at a high-single-digit pace in 2018 despite potential crypto-related headwinds.” There could also be “incremental opportunities” in discrete GPUs, even with Nvidia Corp.’s NVDA, -4.06% new Volta chip.

AMD CEO Lisa Su called out Hewlett Packard Enterprise Co. HPE, -2.57% as a customer for the company’s new Epyc server processor and said that HPE was now “shipping volumes” of its DL385 server. Microsoft Corp. MSFT, -3.29% and Baidu Inc. BIDU, -0.89% have also said in recent months that they would use the Epyc processor. Pajjuri sees these relationships as “encouraging” and believes they will help AMD slowly pick up some share of the server market.

“We expect a gradual revenue ramp, and won’t be surprised to see AMD gain 5 – 10% unit share in the next one to two years,” Pajjuri wrote. “Additional gains will depend on the company’s future roadmap and execution, and we believe it’s too soon to give the company the benefit of the doubt given Intel’s strong product portfolio and entrenched position.”

A better business mix and the “wins” for AMD’s server business help “limit downside” for the stock, Pajjuri added.

Shares of AMD have fallen 3.2% so far in 2017. The S&P 500 Index SPX, -2.37% is up 20% this year, while the Philadelphia Semiconductor Index SOX, -2.45% has gained 41%.