Police believe the stabbing occurred around 9 p.m. in the 500 block of Broadway during a fight between the victim, a 28-year-old transient from Santa Cruz, and another man.
"We suspect the fight was initiated over some kind of drug transaction that went bad," Deputy Chief Steve Clark said.
Clark said the victim was stabbed multiple times in his shoulder and arm and had his backpack and possibly a leather jacket taken.
Officers found the victim in the 500 block of Ocean Street after an employee at the Mei Garden restaurant reported the stabbing.
The victim was transported to Dominican Hospital. Clark did not know his condition today.
He said investigators have identified a 29-year-old transient as a possible suspect in the case.