By Siddarth S

(Reuters) – An analyst on Wall Street upgraded Advanced Micro Devices to a Buy rating after 10 Years Tuesday. This highlighted its increasing market share and strong portfolio of computers chips that rival Intel’s (NASDAQ.) as well as a low stock price.

“This is not the AMD of a decade ago,” Bernstein Research analyst Stacy Rasgon said, lifting the brokerage’s rating on the company to “outperform” — its highest stock rating — from “market-perform”.

The market share of AMD for CPU chips in laptops has increased to close 20% from the low of 5% six year ago. Bernstein cited data from Mercury Research and their own analysis.

Rasgon stated that AMD’s product portfolio is improving… AMD desktop CPUs are on an average on par with Intel’s.

AMD shares rose from $2 in 2012, when Bernstein gave them an “outperform”, to $114 in 2012. This is an increase Rasgon calls “the biggest miss call in all of Wall Street history.”

AMD shares were slightly lower on Tuesday in premarket trades, however the market value of the chipmaker was higher than that of Intel last Wednesday.

AMD shares are currently trading at a discount of 30 percent to its earnings projections for the next twelve-months. This is despite the fact that AMD shares have been near their lowest price in five decades and the stock “entering the realm downright attractive”. Rasgon added.

He said that Intel’s recent commentary suggests there may not be a lot of demand for data centers in the future, which is a positive sign for AMD.

Rasgon indicated that AMD might also get more revenue than originally thought from its recent $50 billion acquisition Xilinx (NASDAQ;). He wrote that “our math indicates the company could see an annual revenue rate that is hundreds of million of dollars higher than our current expectations.”