Advanced Micro Devices (AMD) shares are rising in early trading Tuesday, gaining 2% to $33.10 following a price target boost from Mizuho’s top analyst Vijay Rakesh, noting the chip giant is benefiting from positive sentiment given the lack of an appropriate Intel (INTC) competitive 12nm/7nm response.

Rakesh commented, “We met OEMs and distributors in the PC supply chain including graphic cards and motherboard suppliers. We believe: 1) 3Q18 GPU channel inventory is substantially higher than earlier in the year with pricing softening, 2) the INTC 14nm shortage is causing some 4Q headwinds in DT, and also in NB GPU shipments, 3) AMD’s expected server EPYC shipment spike in 4Q will be key, as INTC continues to lack a CEO and a competitive technology response to AMD’s 12nm Ryzen and 7nm Vega launch.”

“AMD has noted it will focus on OEMs (not hyperscale to ramp EPYC). Our checks indicate 3Q EPYC ramps are still flat q/q. Key will be the 4Q18 ramp of EPYC. INTC lacks a competitive response to AMD’s 12nm/7nm roadmap, and lacks a permanent CEO, aiding positive AMD sentiment”, the analyst added.

Investors who listened to Vijay Rakesh over the past year have made 25.4% on their Rakesh bets, according to TipRanks, a site that tracks and ranks analysts on their predictions. Indeed, the analyst has a very impressive track record with a success rate of 64.5%, and is ranked #58 out of 4874 analysts.

Net net, Wall Street sizes up AMD as a ‘Moderate Buy’ stock, as the bulls edge out the cautious on the chip giant. In the last 3 months, the chip titan has received 10 bullish ratings versus 8 analysts hedging their bets, and two bears who doubts the company’s future. Yet, the consensus price target hints at caution baked into expectations here. The 12-month average price target of $24.68 reflects a potential downside potential of nearly 24% from current levels. (See AMD’s price targets and analyst ratings on TipRanks)