Citi Recommends Nvidia, Marvell To Seek Refuge Amid Semiconductor Downturn

Citi hosted meetings at NVIDIA Corp NVDA, Applied Materials, Inc AMAT, and Marvell Technology, Inc MRVL as part of the Annual Silicon Valley Tech Bus Tour.
Marvell confirmed a lack of slowdown in cloud data center demand and a disproportionate amount of growth or 50%+ coming from new product cycles.
Applied Materials looked to benefit from long-term secular growth drivers like advanced packaging (~$1 billion sales in 2023) and GAA device inflection (~500bps of share gain on incremental $1 billion opportunity).
Overall, comments from the bus tour supported Citi's view that semi caps and product cycle-driven cloud data center stocks like Nvidia and Marvell were better places to hide for investors amidst a semis downturn.
Price Action: NVDA shares traded higher by 0.22% at $188.27 on the last check Tuesday.

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