DeepSeek Launch, Intel’s Price Cuts The unveiling of China’s new resource-light AI model, DeepSeek, roiled the U.S. big semiconductor stocks earlier this week.

Given the natural desire to pick up market discounts, it’s easy to fall into the trap of simply buying AMD stock at the sight of crimson ink. However, it’s better to apply a more strategic approach, especially in the backdrop of a fundamental threat like DeepSeek.

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

Advanced Micro Devices shares fell to a 1-year low this week due to DeepSeek's AI chat assistant news. See why I continue to rate AMD stock a strong buy.

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.