Jun. 10 at 8:40 PM
Citigroup believes the recent pullback in semiconductor stocks is a healthy correction within a broader secular uptrend and continues to favor select names with strong long-term fundamentals. Analyst Atif Malik reiterated Broadcom, Texas Instruments, and Applied Materials as Citi's top U.S. semiconductor picks, even as the Philadelphia Semiconductor Index has surged 61% this quarter, outperforming the S&P 500.
Broadcom remains well positioned to benefit from robust data-center demand driven by AI infrastructure expansion and the adoption of agentic AI-optimized server CPUs. Texas Instruments offers a more defensive profile amid macroeconomic uncertainty, with its industrial and automotive order trends remaining resilient. Meanwhile, Applied Materials is Citi's preferred semiconductor equipment play, supported by rising earnings expectations and growing investment in chip manufacturing capacity.
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