Zhixun Finance learned that Citigroup stated that after seeing semiconductor sales data in August stronger than expected, it is increasing its bullishness on the semiconductor sector.$Analog Devices (ADI.US)$Citigroup remains the top choice in this field, and the investment bank also has a positive outlook on $Advanced Micro Devices (AMD.US)$N/A.$Broadcom (AVGO.US)$,$Micron Technology (MU.US)$,$Microchip Technology (MCHP.US)$And.$Texas Instruments (TXN.US)$Also given a 'buy' rating.

Citigroup analyst Christopher Danely wrote in an investor report: "We have raised our 2024 semiconductor sales forecast from a year-on-year increase of 14% to a year-on-year increase of 17%, i.e. $616.6 billion, as we expect growth in the third and fourth quarters of 2024 to be higher than seasonal trends. We expect the number of products excluding discrete devices to increase by 1% year-on-year, and the average selling price to increase by 18% year-on-year."

Danely added that the strong performance in August was largely driven by DRAM chips, which "surpassed seasonal trends". Total sales in August were $56.2 billion, higher than Danely's expected $51.4 billion; sales increased by 15.4% month-on-month, higher than Danely's forecasted increase of 5.7% and the seasonal increase of 6.7%. Pricing was "well above seasonal factors", with the average selling price of products excluding discrete devices increasing by 14.2% month-on-month, higher than Danely's forecasted 2.7% and the seasonal average increase of 5.7%.

Comparing with the same period last year, the average selling price of products excluding discrete devices increased by 29% year-on-year, significantly higher than Danely's expected increase of 16.1%. Danely wrote: "Due to a 19% drop in sales in 2023, the most severe adjustment since 2001, we anticipate inventory replenishment, and year-on-year growth should continue to rise."

Editor/Emily