Recent analyst actions highlight key movements in the tech sector, with notable shifts in ratings for Advanced Micro Devices (AMD) and Cisco Systems (CSCO) as major upgrades. These moves reflect growing confidence in their growth trajectories and strategic partnerships, particularly in AI. Conversely, Shopify (SHOP) and Chewy (CHWY) have faced downgrades due to valuation concerns and stagnating growth metrics, respectively.
Upgrades
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Advanced Micro Devices (AMD): Upgrade Neutral to Buy by Julian Lin. The analyst was previously skeptical about AMD’s valuation but now sees a significant opportunity following the company’s strategic partnership with OpenAI and robust AI-driven demand.
“AMD appears to be positioned to benefit from the insatiable demand for AI. Whereas it might continue to struggle to compete for the training market, I see a clear argument for why it may experience accelerating demand for inference.”
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Cisco Systems (CSCO): Upgrade Hold to Buy by Bay Area Ideas. The upgrade is based on Cisco’s strengthening demand in AI infrastructure and solidified revenue growth, which are expected to drive future performance.
“Looking back at the company as a whole, there are some mixed developments for their margins, but at the end of the day, Cisco seems to be generally a well run business…The raise of FY2026 guidance is a further indication that these positive trends will continue, and so I would say that the stock is currently undervalued based off of their positioning in the industry.”
Downgrades
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Shopify (SHOP): Downgrade Buy to Sell by Julian Lin. Despite strong company fundamentals, the analyst sees current valuations as overly aggressive, with high expectations that are not aligned with realistic market returns.
“The business is performing well, even accounting for typical seasonality. I, however, caution that this is not the time to lose patience as the math still does not add up given the aggressive valuation.”
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Chewy (CHWY): Downgrade Hold to Sell by Luca Socci. The analyst expresses concern over Chewy’s premium valuation and stagnating customer growth, even as the company transitions to a focus on profitability.
“Chewy has pivoted from being a growth-only story to one of profits. This is why we have seen it report positive FCF and higher margins… However, we are seeing many consumers under pressure. This could imply some pullback in the hard goods category, which is usually more cyclical.”