Updated from 7:57 a.m. EDT

Deutsche Bank Securities cut its rating on chip giant Intel ( INTC), citing the stock's valuation and saying there don't appear to be any additional near-term catalysts that could drive the shares higher.

The research firm cut its rating on Intel to hold from buy but left its price target unchanged at $22. The shares ended Nasdaq trading Thursday at $22.14. On Instinet Friday morning, the stock was down 20 cents to $21.94.

Also left unchanged were Deutsche's 2003 and 2004 earnings estimates on the semiconductor maker. The 19% rally in Intel's stock since May 22 was one of the driving factors behind the downgrade, the research firm said.

"In general we believe that current consensus second-half 2003 forecasts for semiconductor companies, which imply 3% and 4% higher sequentials than the 20-year industry average, are more subject to downside risk than upside risk," Deutsche wrote in a research note. "Following a strong performance for semiconductor stocks over the past 4 months, we expect a period of retrenchment (or at least consolidation) through the slower summer months."

Additionally, Deutsche said, the stock has climbed 46% since its February low, adding $45 billion to its market capitalization.

More from Technology

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

Amazon, Microsoft and Google Face Backlash over ICE, Military Deals

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

As Intel Loses Its CEO, How Well Can It Compete Against Nvidia?

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists