Micron Moves to Top Spot in Citi's Semiconductor Rankings as China's Soft Demand Dampens Semiconductor Market

Citi analyst Christopher Danely spent this week meeting with companies in Taiwan.
He noted that while companies directly connected with generative AI continue to shine a la Nvidia Corp NVDA, the rest of the semiconductor market remains tepid with sluggish demand and high inventory.
The analyst expects aggregate semi-estimates to decline during earnings season, with companies associated with the analog, automotive, wireless, data center, and industrial end markets all sub-seasonal.
The meetings continuously cited China as an area of weakness due to poor demand.
Given the melt-up driven by AI hype, he reiterated his cautious stance on the group.
He also changed his rankings and moved Micron Technology, Inc MU to the top pick.
Danely maintains Advanced Micro Devices Inc AMD with a Neutral, raising the price target from $85 to $120.
Price Action: NVDA shares traded lower by 0.32% at $392 on the last check Monday. MU shares traded lower by 1.55% at $68.10.

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