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The artificial intelligence (AI) megatrend may have slowed a bit recently, but AI isn't going anywhere. In particular, the semiconductor industry is expected to be a key beneficiary of continued growth, with robust AI sales helping to offset softer smartphone demand in Taiwan Semi's (TSM) latest quarterly results. Projected to reach a market size of $1.14 trillion by 2033, it would be safe to say that semiconductor stocks are poised for significant upside from current levels.
That said, after a year packed with blowout earnings beats in 2023, analysts at Citigroup (C) are expecting a more “muted” performance as Wall Street prepares for Q1 earnings reports from semi stocks. The brokerage firm thinks under-the-radar Microchip (MCHP) is particularly well-positioned right now - but also named a number of other stocks in the group that it still considers “Buy”-worthy. Here's a closer look at 7 top chip picks from Citi.
