A Contrarian PC Play From Dan Niles

One microchip manufacturer could see its stock double in the next couple of years on this catalyst, Dan Niles of AlphaOne Capital Partners said Thursday.

"AMD was a stock that went ahead and blew up in the middle of 2011 with manufacturing issues," he said.

"They ended up with a new CEO. Their market share went from 20 percent to 15. They were basically on their way to bankruptcy at one point, it looked like, and they've sort of gotten a new lease on life with the game platforms that are coming out."

On CNBC's "Fast Money," Niles said that Sony's PlayStation 4 and Microsoft's Xbox One would be a strong driver for the chipmaker – despite what's happening in the PC market.

(Read More: Citi Analyst Predicts 'Worst Quarter Ever in PC History')

"Wall Street's got these guys losing money until the first quarter of 2015," he added. "I think you're going to see this business from the game platforms potentially being able to add 40 cents in earnings by the time it gets fully ramped up."

Niles also said that the potential growth driver wasn't yet reflected in AMD's stock price.

"I don't think the move is in the stock yet. The stock was closer to 8 bucks about a year and change ago, before they ran into all these issues," he added.

(Read More: Windows PC Retail Sales Falling After Windows 8)

"I don't see any reason why the stock can't double over the next couple of years from current levels."

Trader disclosure: On May 30, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long GOOG; Karen Finerman is long JCP PUTS; Karen Finerman is long GM; Karen Finerman is short SPY; Karen Finerman is long MDY Puts; Jon Najarian is long AAPL ; Jon Najarian is long JPM; Jon Najarian is long FSLR; Jon Najarian is long TSLA; Jon Najarian is long EMC; Jon Najarian is long JOY; Jon Najarian is long ALTR; Jon Najarian is long COP; Jon Najarian is long GRPN; Jon Najarian is long HL; Jon Najarian is long OC; Jon Najarian is long TMO; Brian Kelly is long TLT; Brian Kelly is long YEN; Brian Kelly is short S&P Futures; Brian Kelly is short NIKKEI.