AMD (AMD, $58.51) shares gets rating downgrade from Wells Fargo analyst, on lofty valuation concerns
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.
AMD's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for AMD moved out of oversold territory on February 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 29 similar instances when the indicator left oversold territory. In of the 29 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 56 cases where AMD's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on March 09, 2026. You may want to consider a long position or call options on AMD as a result. In of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for AMD just turned positive on March 09, 2026. Looking at past instances where AMD's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a +1 3-day Advance, the price is estimated to grow further. Considering data from situations where AMD advanced for three days, in of 304 cases, the price rose further within the following month. The odds of a continued upward trend are .
AMD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
AMD moved below its 50-day moving average on February 04, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for AMD crossed bearishly below the 50-day moving average on February 12, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AMD declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for AMD entered a downward trend on March 09, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. AMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (4.980) is normal, around the industry mean (9.175). P/E Ratio (73.728) is within average values for comparable stocks, (147.135). Projected Growth (PEG Ratio) (0.571) is also within normal values, averaging (1.439). AMD has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.021). P/S Ratio (9.091) is also within normal values, averaging (29.704).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a manufacturer of integrated circuits for semiconductors
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