The sky is falling for Advanced Micro Devices (AMD - Get Report) . Or at least, that's how it feels.

AMD stock fell almost 15% last week and opened Monday's trading session lower by 6% before bouncing slightly so far in early trading.

Analysts at Morgan Stanley downgraded shares of Advanced Micro Devices to underweight from equal weight, moving their price target down to $8 from $11. From Friday's close of $11.84, the price target would imply more than 32% downside.

Analyst Joseph Moore was behind the downgrade, saying he has been "somewhat cynical" on AMD thanks to its valuation, but had previously maintained his equal weight rating because his earnings estimates were above consensus estimates. Even though Wall Street estimates have increased toward Moore's estimates, momentum is failing to build for AMD. Gains in cryptocurrencies like bitcoin should "gradually fade" and graphic card growth momentum should slow.

All of this led to Moore's downgrade, which does look a bit odd as bitcoin prices turn out another new high recently. Should AMD stock ultimately fall to $8, it will mark a 48.8% decline from its 52-week high of $15.65. That would be a tough loss for investors to absorb, as many have been bullish on the name. AMD has undoubtedly been one of the larger battleground stocks of 2017.

It didn't help when AMD reported less-than-stellar earnings last week, only for Intel (INTC - Get Report) to report quarterly results that fueled its stock even higher. All eyes will now shift to Nvidia (NVDA - Get Report) , which will report earnings in mid-November. Given its 89% year-to-date rally, investors will want to know which earnings reaction Nvidia stock will mirror, Intel's or (AMD - Get Report) ?

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.