Shares of Advanced Micro Devices Corp. fell as much as 9% Thursday after Goldman Sachs cited Intel and Nvidia as threats and initiated coverage on the stock with a sell rating.

Analyst Toshiya Hari slapped an $11 price target on the stock, which implies 22% downside from Wednesday’s closing price of $14.17. AMD’s AMD, -2.87% shares traded just below $14 in late-morning trade. The average rating on the stock is the equivalent to hold, while the average 12-month price target is $11.97, according to a FactSet survey of roughly 30 analysts.

The bearish note follows huge gains for AMD’s stock over the past year. Its shares have increased 14% in the past three months and roughly 361% in the past year. It has vastly outperformed the S&P 500 SPX, -0.46% , which is up 3.4% in the past three months and 14% in the past year.

Hari said he expects the stock to start underperforming the market after AMD’s analyst day in May. While he acknowledges the strides AMD has made under Chief Executive Officer Lisa Su since she was appointed in 2012, he believes the stock has already priced in a sharp improvement in its competitive and financial position and finds current valuation metrics difficult to justify.

Among the problems facing AMD is competition from Intel Corp. INTC, +0.74% and Nvidia Corp. NVDA, -3.66% , which Hari said will likely offset any meaningful traction AMD gets with new products. In March, AMD announced a new processor called Ryzen, a high-performance chip aimed at gamers, and Naples, a server chip aimed at Intel’s Xeon. It also released Vega, a graphics processing unit that competes with Nvidia’s GeForce GTX 1080 Ti graphics card.

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“We see two potential pitfalls to the company’s long-term financial targets,” said Hari. “If AMD were to gain meaningful traction with its new products in 2017, we believe Intel and Nvidia would be likely to fight back in late-2017 and/or 2018 in the form of pricing concessions.”

Even if AMD’s competition doesn’t try to undercut it by cost, Hari said there is still upside risk to AMD’s profit margins in the form of increased operating expenses, as the chipmaker expands its distribution channel to facilitate new product launches. AMD’s cost of sales soared 12.5% year-over-year in 2016.

Nvidia, by comparison, has been a rising star in the chip world, having benefited from ambitious investments in autonomous cars, gaming and artificial intelligence.

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Nvidia was the best-performing stock in the S&P 500 in 2016. Its shares have gained nearly 177% in the past 12 months, though they’ve underperformed the market recently as analysts raise questions about its ability to sustain that growth.

On Wednesday, Canaccord Genuity cut its price target on Nvidia by $5 to $125. The day prior, Pacific Crest downgraded Nvidia stock to underweight from sector weight, citing market saturation for desktop graphics chips that could hinder its growth.

Intel, on the other hand, has stumbled under the weight of its own fumbled mobile strategy and competition in other areas, notably from Qualcomm Corp. QCOM, -1.73% . Its shares have declined 1% in the past three months and are up just 13% in the past year.

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