Citigroup Ranks Their Top 10 Semiconductor Stocks

Citigroup recently released a report updating their view on semiconductor stocks now that most of the names in the space have announced their Q4 earnings. Citigroup ranked ten names in the space from most to least-preferred stocks.
Top Names
Microchip Technology Inc MCHP remained Citi’s top semiconductor pick. Analysts like the strong growth that has resulted from increasing market share, high margins, stellar cash management and strategic acquisition history. Citi rates Microchip stock at Buy.
The only other Buy-rated stock on Citi’s list is the number two-ranked Texas Instruments TXN. Citi expects Texas Instruments to produce the highest earnings growth of all the ten names, and analysts praise the company’s cash management and operational execution.
Bottom names
Linear Technology Corp LLTC and Advanced Micro Devices Inc AMD maintained the nine and ten spots respectively. These two names are the only two Sell-rated names on the list. Citi analysts mention secularly-declining margins for Linear and “questionable” resource management for Advanced Micro Devices as reasons for the low rankings.
Movers
Analog Devices Inc ADI and Maxim Integrated Products Inc MXIM both jumped up a spot on Citi’s list since the last ranking.
The moves by these two names came at the expense of Intel Corp INTC, which Citigroup dropped in the rankings from the three spot down to five after the company’s Q4 numbers included the first negative data points on PCs in about a year.
The full rankings
1. Microchip Technology (Buy)
2. Texas Instruments (Buy)
3. Analog Devices (Neutral)
4. Maxim Integrated Products (Neutral)
5. Intel (Neutral)
6. Xilinx Inc XLNX (Neutral)
7. Altera Corp ALTR (Neutral)
8. ON Semiconductor Corp ONNN (Neutral)
9. Linear Technology (Sell)
10. Advanced Micro Devices (Sell)