Citigroup's research report pointed out that American semiconductor stocks have recently been heavily sold off, believed to be due to macroeconomic factors, and that the market originally had high expectations for the stock earnings of this sector. However, the performance in the second quarter seems relatively inferior, which has disappointed investors. As the speed of inventory replenishment for analog semiconductors is lower than expected, and there is a downside risk in the automotive terminal market, which accounts for 14% of semiconductor demand, dragging down the performance of a group of stocks such as Intel, GlobalFoundries, Micron Technology and NXP Semiconductors. However, Citigroup expressed bullishness on the development prospects of AI and the semiconductor industry, and looks forward to the sustainable upward push of prices due to the reduction in DRAM production capacity. It believes that now is a good opportunity for investors to enter the market and add positions.

Citigroup's top pick is Micron Technology, and it also gives a "buy" rating to stocks such as AMD, Broadcom, Analog Devices, Microchip Technology, Nvidia and KLA Corporation.