Intel Shines at Citi Global Tech Conference Amidst China's Inconsistency

Day One of the Citi Global Technology Conference had most semiconductor companies reiterating what they said during quarterly conference calls. 

Citi analyst Christopher Danely reiterated his Neutral rating on Intel and a price target of $34.00.

The analyst stated in his preview that he did not expect much change as the weakness in analog showed up in the last month of 2Q23, and he expected the same in 3Q23. 

Intel Corp INTC was most positive in his opinion, given the upside during 3Q23, their expectations of server share stabilizing during 2024, and the manufacturing ramp continuing to progress without delays. 

The one consistent negative was that China's demand remains sluggish, which he believes could result in a downside to guidance for 4Q23. 

Micron Technology, Inc MU remains his top pick as DRAM pricing is turning around in 3Q23, and he launched a positive catalyst watch and raised his price target. 

Danely's other Buy-rated names include ON Semiconductor Corp ON, Advanced Micro Devices, Inc AMD, Analog Devices, Inc ADI, and GlobalFoundries Inc GFS.

ADI mentioned that the weakness they are experiencing is macro-driven and broad-based, but the company expects to maintain a gross margin floor of close to 70% despite the downturn. 

The company expects auto to be the most robust end market and industrial to be the weakest end market in 2024. 

Price Action: INTC shares traded higher by 3.37% at $38.23 on the last check Thursday.