A number of chip-equipment producers were downgraded to neutral from buy at DA Davidson, with the firm citing factors including significant year-to-date stock-price advances.

Besides the price rises, analyst Thomas Diffely wrote in a Monday research note that "the all-important memory recovery continues to lag expectations and the near-term data flow will likely remain negative."

But even with the current downgrades, the analyst said, "our multiyear view remains bullish as the emerging data-driven economy should eventually drive a significant memory buildout."

Diffely downgraded the following stocks to neutral from buy:

Advanced Energy Industries (AEIS) - Get Report . He cut the price target to $55 from $60. The shares finished down 6.3% at $51.79.

Applied Materials (AMAT) - Get Report . He cut the price target to $45 from $55. The shares were down 1.2% at $43.45.

Ichor Holdings (ICHR) - Get Report . He cut the price target to $25 from $32. The shares declined 6.2% to $22.88.

Kulicke & Soffa (KLIC) - Get Report . He cut the price target to $26 from $30. The stock was down 4.8% at $21.45.

Lam Research, (LRCX) - Get Report . He cut the price target to $200 from $225. The stock was 1.2% lower at $181.40.

The analyst maintained buy ratings on Nanometrics (NANO) - Get Report and Rudolph Technologies (RTEC) - Get Report -- because of what he called their strong second-half outlooks -- and MKS Instruments (MKSI) - Get Report because it has seen less-sharp price appreciation and because the company has diversified its operations.

But he cut the price targets, to $42 from $44 on Nanometrics, to $32 from $34 on Rudolph and to $95 from $105 on MKS.

Nanometrics was off 1.3% at $33.35, Rudolph gave up 2.6% to $26.76, and MKS eased 1.3% to $77.02.

Diffely kept his buy rating on Cohu (COHU) - Get Report because he's seeing faster cost synergies from last October's Xcerra acquisition. He cut the price target to $19 from $25. The stock was off 1.5% at $15.06.

And he maintained two design firms, FormFactor  (FORM) - Get Report and Photronics (PLAB) - Get Report at buy "as overall design activity remains robust." He pared the price targets, to $19 from $23 on Form Factor and to $13 from $15 on Photronics. FormFactor shares slipped 1% to $15.63, and Photronics was at $8.36, down 1.5%.

The expected recovery for memory "has been pushed into 2020," Diffely said. Supply continues to outpace demand and "pricing is still falling, albeit at a slower clip," he wrote.

And if the market is to stabilize in the second half, it would need to see a recovery in handsets and growth in data centers, the analyst said.

He also said that "geopolitical turmoil in China (especially with regards to marquee names Huawei and ZTE (ZTCOY) ) has created uncertainty and is dampening demand from this important semiconductor customer base."

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