Advanced Micro Devices (AMD) shares got a rating downgrade from Wells Fargo Securities.
Wells Fargo Securities analyst Aaron Rakers lowered his taring on the chipmaker’s stock to equal weight from overweight.
However, Rakers increased his one-year price target on the shares to $64 from $55.
In a note to clients titled, Rakers indicated that while he remains optimistic on AMD's competitiveness, he also thinks that the stock price is approaching lofty highs that are discounting 2022 per-share earnings of more than $2.50.
Wells Fargo downgrade comes at an interesting point. AMD’s stock gained nearly 160% year-over-year at the end of January. There were expectations that broader demand for chips is rebounding, and that AMD is well-positioned to milk the turnaround.