Investors should ignore the recent volatility in Advanced Micro Devices stock because the chip maker’s product cycle is as strong as ever, according to Cowen.

AMD (ticker: AMD) makes processors that act as the main computing brains for personal computers, servers, and graphics cards, competing with Intel (INTC) and Nvidia (NVDA). Its stock has risen roughly 60% year to date as investors have grown increasingly optimistic about the company’s product pipeline this year. But the shares are down about 13% from its August highs on macro and competition concerns.

In July, the chip maker launched its new Zen 2 family of 7 nanometer (nm) desktop processors. Intel primarily offers 14nm desktop chips. Smaller-nanometer manufacturing processes have historically allowed semiconductor companies to create faster, more power-efficient chips.

“Don’t be distracted by the [near-term] noise—AMD’s lineup of 7nm products has driven strong initial share gains while competitive road maps remain in flux, and console headwinds become tailwinds in 2020,” Cowen analyst Matthew Ramsay wrote on Sunday in a note entitled “Busy Quarter of Noise, Fundamental Share Gains, Thesis On Track.”

AMD shares were down 0.3% to $29.65 in Monday trading.

The analyst still expects AMD’s new server chip called Rome will gain significant share against Intel next year. He cited how AMD’s chip offers materially better performance for the price versus its competition.

“Combined with announced partners Amazon, Microsoft, Baidu, and Tencent, we believe this has the potential to allow AMD to quickly capture x86 server share against Intel’s road map,” he wrote.

Ramsay reaffirmed his Outperform rating and $40 price target for AMD shares. That price target implies about 35% upside from the current price.

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