Citi remains ‘wildly bullish’ on chip stocks

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Citi is still “wildly bullish” on semiconductor stocks, based on the current demand trends, the firm stated in a note Thursday.

Analysts at the bank noted stable demand in PCs, handsets, servers (which is 53% of the semiconductor total addressable market), and inventory replenishment.

“We look for at least 11% YoY growth in global semiconductor sales in 2024,” said Citi, adding that artificial intelligence leads the way, and they stay long NVIDIA (NASDAQ:NVDA), AMD (NASDAQ:AMD), Broadcom (NASDAQ:AVGO).

“The AI market continues to grow and our checks indicate TAM expansion with government agencies, universities, and large/medium businesses all buying AI chips,” analysts added. “We continue to favor NVDA, AMD, and AVGO and expect the upcoming AVGO earnings to be another positive catalyst.”

However, Micron Technology (NASDAQ:MU) remains the bank’s top pick as analysts believe the DRAM upturn has begun, highlighting the recent beat and raises by Samsung and Hynix.

Source: Investing.com