March 11 - Citi analysts have revealed their top AI picks for the semiconductor sector amid challenging market conditions. The firm reaffirmed its bullish outlook on Micron Technology (MU, Financial) and Broadcom (AVGO, Financial) despite a sluggish start to the year. According to the Semiconductor Industry Association, monthly sales dropped 14% to $50.8 billion, missing the average seasonal decline of 9.1% and falling short of Citi's $52.3 billion forecast amid weak memory and microcontroller demand.
The report also highlighted a 22% month-over-month decline in units ex-discrete, while year-over-year growth came in at a modest 4%. Pricing, however, surged by about 11%, driven by gains in analogue and microcontroller segments. Citi analyst Christopher Danely noted, "Robust AI demand is expected to spur recovery as analogue inventory replenishment accelerates later this year.
Investors eyeing long-term growth view these picks as prime opportunities to benefit from an evolving AI landscape, confident that Micron and Broadcom are well positioned to capitalize on market rebounds in the coming fiscal quarters.
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