Stifel said there is more room to run for Advanced Micro Devices even as the chip market faces ongoing supply chain disruptions and pockets of consumer weakness. Analyst Ruben Roy began covering the chip stock with a buy rating, saying in a note to clients Wednesday that he expects AMD to expand profits and deliver strong growth as increase market share in the areas of its expanding IP portfolio. “Current valuation seems reasonable to us given last year’s forward EPS is 20 times lower,” he said. “Despite short-term demand volatility, we expect equity returns to drive growth above the market and we expect gross margin and operating margin expansion to continue, This will ultimately drive multiple expansions, in our view.” AMD shares have been under pressure this year, falling nearly 45% amid a weakening chip stock. That said, the company’s new $122 price target suggests the stock could be up more than 53% from Wednesday’s close. “In the future, we believe that AMD’s expanding IP portfolio and ability to provide platform solutions will likely become a competitive advantage,” said Lee. “From a short-term perspective, while concerns about a potential top in PC market dynamics are likely to continue, we believe recent share price weakness reflects those concerns.” – CNBC’s Michael Bloom contributed reporting