At least four analysts have lowered their ratings on the chip stock so far this year, with the latest being Ben Reitzes of Melius Research. “We should have done this 10 months ago after an epic run for AMD,” he wrote, as he moved to a hold rating from his prior buy stance.

Melius downgraded shares of chip maker Advanced Micro Devices to Hold from Buy, and cut the target price to $129 from $160.

AMD stock (NASDAQ:AMD) has seen a meaningful sell-off over the past week, declining by about 11% over the last five trading days..

The semiconductor company's share price was down 7% as of 3:45 p.m. ET amid the backdrop of a 1.8% decline for the S&P 500 (SNPINDEX: ^GSPC) and a 3.5% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC).

Another analyst is casting doubt on Advanced Micro Devices Inc.’s growth potential in graphics processing units, leading to the latest downgrade of the semiconductor stock. Wolfe Research’s Chris Caso cut his rating on AMD shares AMD to peer perform from outperform on Thursday, reflecting more muted expectations for GPU revenue this year.

Advanced Micro Devices ( AMD -1.27%), also known as AMD, has been a surprisingly underperforming tech stock over the past year. In 2024, it declined by 18% even despite its promising growth opportunities as a top artificial intelligence (AI) chip maker.