Source: Wall Street See
According to Citigroup's survey, with Broadcom acquiring more AI customers and adding value from VMware, it is catching up with Nvidia as the largest holding for investors, while investor sentiment towards Nvidia has cooled down.
Which stocks are favored in the AI concept? Citigroup conducted an investor survey last week to capture investors' sentiments towards the possible trends of AI.
Citigroup survey results show that
$NVIDIA (NVDA.US)$Still the most popular, but the popularity of [unknown content] is catching up. It is the most sought-after in the field of simulation chips, followed by Analog Devices. Some expressed concerns about MI300 chip losing its edge, and their view is the most negative. In the field of simulation chips, NXP Semiconductors is still the most popular stock, followed by Silicon Carbide, mainly due to stocking up. Some hedge funds are also buying stocks, as they expect better-than-expected second-quarter benefits and future guidance adjustments. Citigroup downgraded it from "buy" to "neutral", as it believed that the risk of the commercialization of ON Semiconductor's Silicon Carbide business (which accounts for 12% of its 24-year sales revenue) would affect its valuation multiplier.$Broadcom (AVGO.US)$In the field of simulation chips, NXP Semiconductors is still the most popular stock, followed by Silicon Carbide.$NXP Semiconductors (NXPI.US)$Some hedge funds are buying stocks, expecting its revenue to grow and capital expenditure to decrease. Citigroup expects revenue growth in Texas Instruments, but is skeptical about reducing capital expenditure, and expects it to only be possible by the end of this year.$Micron Technology (MU.US)$Expressing concern because MI300 chip is no longer advantageous for the business.$Advanced Micro Devices (AMD.US)$Their view is the most negative.
NVIDIA is still the most popular, but Broadcom is close behind.
As Broadcom has more AI customers (such as Open AI and ByteDance) and value added from VMware, it is catching up with NVIDIA to become the largest holding, while investors have cooled their sentiment towards NVIDIA.
NXP Semiconductors is the most popular in the analog chip field, followed by Analog Devices.
In the field of simulation chips, NXP Semiconductors is still the most popular stock, followed by Analog Devices.$Analog Devices (ADI.US)$This is mainly due to stocking up.
However, Citigroup maintains a sell rating on NXP Semiconductors, as it estimates that there is more than 35% downside potential due to adjustments in the auto industry.
Some buy ON Semiconductor, and have the most negative outlook towards AMD, expressing concerns about Micron.
Some hedge funds are also buying NXP Semiconductors stocks.$ON Semiconductor (ON.US)$Citigroup downgraded ON Semiconductor from "buy" to "neutral", as it believed that the risk of the commercialization of the Silicon Carbide business (which accounts for 12% of its 24-year sales revenue) would affect its valuation multiplier.
Investors have the most negative outlook towards AMD, and the market is concerned that MI300's advantage may face challenges from NVIDIA, leading to revenue decline. However, Citigroup holds the opposite opinion and expects that MI300 orders will not be cut.
Citigroup added Micron to the negative watchlist, as Samsung may reach a cooperation agreement with NVIDIA on HBM in the third quarter of 24, and expects Micron's stock price to perform poorly in the next month.
Some hedge funds are holding Texas Instruments for the long-term, but mutual funds are not interested.
Some hedge funds are buying Analog Devices stocks, expecting its revenue to grow and capital expenditure to decrease.$Texas Instruments (TXN.US)$Citigroup expects revenue growth in Texas Instruments, but is skeptical about reducing capital expenditure, and expects it to only be possible by the end of this year.
However, mutual funds seem not interested in Texas Instruments until they see the gross margin bottoming out. Citigroup believes that Texas Instruments may reduce long-term capital expenditures and increase the transparency of depreciation by the end of this year, which can roughly determine the bottom of the profit margin and may make us turn positive towards this stock.
Editor / jayden