BUZZ-Citi expects muted Q4 chip firms earnings but stays positive on AI

Reuters
21 Jan
BUZZ-Citi expects muted Q4 chip firms earnings but stays positive on AI

** Citi expects overall market expectations for chip companies' Q4 results to decline due to weak estimates from analog chipmakers and sluggish demand in PC, industrial and auto end markets

** Brokerage expects Advanced Micro Devices AMD.O to raise its AI sales forecast from over $5 billion in 2024 to $8 billion in 2025

** Analog companies Analog Devices ADI.O, Microchip Technology MCHP.O and Texas Instruments TXN.O to forecast 1Q 2025 below seasonality due to weak industrial demand - Citi

** Brokerage says auto end market will remain weak in first half of 2025 due to high inventory and soft demand, and says NXP semiconductors' NXPI.O 2025 and 2026 EPS estimates will decline

** However, says demand is improving in traditional servers end market due to recovery in cloud spending

** Says inventory replenishment is driving demand in communications end markets

** Citi lowers PT of Intel INTC.O to $21 from $22 and of AMD to $175 from $200

** Citi expects INTC, GlobalFoundries GFS.O, AMD, NXPI, On Semiconductor ON.O and TXN to forecast Q1 revenue below estimates

(Reporting by Priyanka.G in Bengaluru)

((priyanka.g@thomsonreuters.com;))

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