Citi analyst Christopher Danely suggests that the recent sell-off in semiconductor stocks is nearing its end, and now may present a promising buying opportunity.
However, other semiconductor stocks remain under pressure amid persistent concerns over slowing demand across the sector. Semiconductor estimates have dropped by 11% during the recent earnings season.
“We believe the downside/sell-off is almost over and attention will shift to 2025,” said Citi analyst Christopher Danely in a research note titled ‘Almost Time To Buy’.
According to him, the 9% decline in the Philadelphia Semiconductor Index ($SOX) was largely due to downside surprises from Microchip ($MCHP), NXP Semiconductors ($NXPI), and Intel ($INTC).
The brokerage projects global semiconductor sales will rise by 9% in 2025, building on 17% growth in 2024, as the industrial market stabilizes and the auto sector’s downturn eases in the first half of next year.
Nvidia Corp. ($NVDA)
Shares of Nvidia’s were nearing a new record high after gaining 2% during mid-day trading on Monday. Retail sentiment on Stocktwits has flipped into the ‘bullish’ (69/100) territory from ‘bearish’ a day ago.
The semiconductor giant is set to announce third-quarter earnings after the close on Nov. 20, with Wall Street projecting earnings of $0.74 per share on $32.95 billion in revenue.
Nvidia, which recently replaced Intel ($INTC) in the Dow Industrial Average, has seen its stock soar by 206% this year, driven by strong AI and data center demand.
Broadcom Inc. ($AVGO)
Shares of Broadcom were down nearly 2% during mid-day trading on Tuesday with retail sentiment flipping into the ‘bearish’ (42/100) territory from bullish a day ago on Stocktwits.
Analysts expect Broadcom to build on its recent growth, with 37 giving the stock buy-equivalent ratings and five recommending a ‘Hold’ rating.
Broadcom generated 47% revenue growth to $13.1 billion and an earnings increase of 18% to $1.24 per share in the third quarter.
Broadcom’s stock has gained 62% so far this year.
Advanced Micro Devices Inc. ($AMD)
Shares of Advanced Micro Devices (AMD) were down over 3% on Tuesday as retail sentiment dipped to ‘bearish’ (42/100) from ‘bullish’ a day ago with consistent message volume on Stocktwits.
The chipmaker’s recent quarterly results met expectations, delivering earnings of $0.92 per share on $6.82 billion in revenue.
Wall Street remains favorable, with 37 analysts issuing buy-equivalent ratings and 11 suggesting a hold.
AMD stock has risen by 3% so far this year.
Qualcomm Inc. ($QCOM)
Shares of Qualcomm were also down over 3% on Tuesday as retail sentiment dipped to ‘bearish’ (42/100) territory with little change in message volume.
Some users on the platform voiced concerns that President-elect Donald Trump’s proposed policy changes could hamper the growth of the semiconductor industry.
Qualcomm’s stock has gained 16% so far in 2024.
Texas Instruments Inc. ($TXN)
Shares of Texas Instruments were down nearly 3% on Tuesday but retail sentiment improved to ‘extremely bullish’ (83/100) from ‘neutral’ a day ago on Stocktwits.
Wall Street’s outlook is mixed, with 18 analysts recommending a hold, 12 advising a buy, and 5 issuing sell-equivalent ratings.
The stock reached a record high of $220.39 on Friday and is up 24% year-to-date.
For updates and corrections email [email protected].
Read more: Camtek Shares Jump Premarket As HPC Demand Drives Earnings Beat: Retail’s Overjoyed
