In opposition to the poster above I say that CPU does not matter as much. MUCH more important is a good GPU.

Internal GPUs do NOT cut it for Valheim!

Do yourself the favor and get a good dedicated GPU. Doesn't have to be anything superfancy, I would always go for something mid-range, so you should spend AT LEAST like 250 300 Euro/Dollars for a GPU, more like 400.

With CPU, a good mid range CPU, whether AMD or Intel is good as well. An i5 is fine, even an i3 is probably enough. Still, I would go for the i5.

I don't take part in the Intel/AMD wars (Apple M1 is better than both anyway). It doesn't matter which one you choose, as long as you're in a certain price range, you will get fairly similar results. Forget benchmarks, you will not notice any difference.

Don't skimp on the motherboard as well, again, good mid-range board is recommended. Don't go too cheap. 16GB RAM is minimum nowadays. M2 ports is needed as well for fast NVME SSDs. You'll need it for the inevitable dreaded world save stutter.

A good gold rated power supply is not that expensive, but is much more reliable than cheap stuff. I have a Corsair 600W PSU and had no problems so far. That's the minimum wattage I would go for.

Yes, all of that together will set you back about 900 Euro/Dollar. Trust me, you will want that.

You buy cheap, you buy twice.

Edit: Just saw that a RX 6500XT from AMD is available for about 180 Euros. For that price, even if it is the lowest of the low, you can probably get nothing better. Anything better will set you back at least twice the price.

Also, do NOT buy any of the GTX 1050 or GTX 1630 series. They're inferior to the 6500XT and cost sometimes even slightly more.

That said, my wife still uses her trusty GTX 1050Ti and has no problems playing the game. So, YMMV.