Wall Street Zen downgraded Advanced Micro Devices, Inc. (AMD) from buy to hold on Saturday. The move adds a note of caution after the company’s market capitalization topped $1 trillion for the first time earlier in the week.
The downgrade contrasts with more bullish views. Bank of America recently raised its price target to $720, citing significant growth potential in the AI server CPU market.
AMD’s strong year-to-date advance reflects investor enthusiasm for its role in AI. But its trillion-dollar valuation has also raised concerns about high expectations and whether the stock price reflects its position as a distant second to Nvidia in the AI accelerator market.