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

Wall Street forecasts Advanced Micro Devices will report revenue of $7.53 billion for Q4, up 22% year-over-year, in-line with management guidance of $7.5 billion, plus or minus $300 million. Earnings of $1.09 per share, a 41.5% increase, are expected.

AMD's stock suffered from the same news dragging down much of Silicon Valley today: the release of a new artificial intelligence (AI) model out of China that rivals the best U.S. models.