Apr. 6 at 12:42 PM
Citigroup sees a cautious but mixed Q1 earnings season for semiconductors, with upside potential in AMD and Analog Devices, while maintaining Broadcom, Nvidia, Texas Instruments, and Monolithic Power Systems as top picks.
The bank favors data center chips driven by AI and server demand, followed by analog semiconductors amid low inventories, and is more cautious on smartphone-related chips due to higher memory costs.
For AMD, Citi kept a Neutral rating and cut its target to
$248, using a sum-of-the-parts valuation. It slightly raised 2026 EPS to
$6.38 on stronger AI-driven CPU demand and sees upside from planned CPU price hikes by AMD and Intel. AMD continues gaining server share, though 2H26 may be seasonally weaker.
Analog Devices (Buy,
$400 target) is supported by expected 10–15% price increases, with Citi estimates already above consensus.
Data centers remain the strongest segment (34% of demand), with AI driving growth.
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