Citi Surprises by Selecting Leader Among Top Chip Stocks: AMD, NVDA, AVGO, INTC
Citi has identified Advanced Micro Devices (AMD) as the leading company in the semiconductor sector. Following a positive response from investors during its recent Analyst Day, AMD is noted for having the strongest earnings growth potential among major chip manufacturers.
Key Insights on AMD
According to Citi analyst Christopher Danely, AMD has seen significant buying interest after presenting ambitious long-term targets. The company aims for a revenue compound annual growth rate (CAGR) exceeding 35% and an adjusted earnings per share (EPS) of over $20. This forward-looking strategy positions AMD favorably in the rapidly evolving $1 trillion compute market.
Current Landscape of Major Chip Stocks
Investor sentiment surrounding the semiconductor industry appears mixed. While Nvidia (NVDA) remains a significant player in the AI field, it is no longer considered the top choice among investors. Broadcom (AVGO) continues to attract attention, but investors are seeking more transparency regarding its future growth, especially concerning its Tensor Processing Unit (TPU) chips.
- Nvidia (NVDA): Once a clear leader, now experiencing less favorable sentiment compared to AMD and Broadcom.
- Broadcom (AVGO): Still widely owned, with concerns about the potential benefits from selling AI workload chips.
- Intel (INTC): Gaining renewed interest, especially in its server chip division, though concerns about profitability in the foundry business persist.
Nvidia’s Upcoming Earnings Report
Nvidia is scheduled to release its fiscal Q3 2026 results on November 19. Analysts predict earnings of $1.25 per share, reflecting a 53% increase year-over-year, with revenues expected to reach $54.85 billion, up 56% from the same period last year.
Investment Ratings and Potential Upside
In comparison among the leading stocks:
- Nvidia: Highest upside potential at 34%, rated as a Strong Buy.
- AMD: Expected upside of 22%, rated as a Moderate Buy.
- Broadcom: Strong Buy rating with a potential upside around 17%.
- Intel: Lowest potential upside at just over 3%, currently rated as a Hold.
As investors reassess their options in the semiconductor market, AMD stands out as the top pick, benefiting from strategic growth plans and solid investor confidence.
