If you have an AMD Graphics Card, you can change its settings using AMD’s Radeon Control Panel utility. Just follow these steps:
Right-click an empty desktop space and open up the AMD Radeon Settings Control Panel.
Now, choose the Global Graphics option to change graphics card settings for your games. Once you’re in, turn off all the proprietary post-processing options that AMD has enabled by default. These include Radeon Anti-Lag, Radeon Chill, and Radeon Boost.
Also, turn off wait for Vertical Refresh (which will boost performance but can cause screen tearing). Disable Image Sharpening, Anisotropic Filtering, Maximum Tessellation Level, Frame Rate Target Control, and OpenGL Triple Buffering.
Now, turn on Surface Format Optimization.
For the GPU Workload setting, select Graphics Mode for the best performance.
Select Performance Mode under the Texture Filtering Quality option.
Finally, set both Tessellation and Shader Cache to AMD Optimized mode for the most optimal experience while playing Valheim.