Investors should continue to bet on Advanced Micro Devices despite the chipmaker’s disappointing forecast for the current period, Bank of America said Wednesday. Analyst Vivek Arya reiterated his buy rating on the stock, saying in a note to clients that AMD is a “generational share gain opportunity” and investors should look beyond the company’s lighter-than-expected guidance for the current quarter. “Q3 sales outlook of $6.7bn modestly lower than $6.8bn consensus given AMD’s prior record of consistent raises, but we see that as a quarterly noise with several new product launches in Q4 (5nm Genoa server and PCs) which is stronger, rather than in Q3,” he wrote. Shares of the chipmaker fell about 6% in the premarket after AMD posted earnings that beat estimates but shared an outlook for the third quarter that came in below the Street’s expectations. Looking ahead, Arya expects data center momentum to continue driving double-digit growth quarter over quarter through 2023 and anticipates it will become AMD’s largest segment next year. Share gains in the server market from Intel are also likely ramping up, he noted. AMD shares have plummeted 31% this year and sit nearly 40% off their highs as the sector remains under pressure from supply chain disruptions and a potential slowdown in consumer spending. Arya upped the bank’s price target on the stock to $120 a share from $110, meaning shares could rally nearly 21% from Tuesday’s close. —CNBC’s Michael Bloom contributed reporting