Citi stays neutral on Intel, Advanced Micro Devices, as notebook shipments continue to fall
Andrei Berezovskii

Investment firm Citi maintained its neutral ratings on Intel (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD) on Tuesday after the bank pointed to continued declines in notebook shipments, raising the risk for more downside for both semiconductor companies.
In a note to clients, analyst Christopher Danely said that notebook shipments in July were down 15% month-over-month, in-line with the bank's recently lowered estimates. However, PC demand is likely to keep falling the rest of this year and into next year, Danely pointed out.
"We reiterate our Neutral ratings on Intel and AMD as we expect the downturn in the PC market to negatively impact both and our estimates remain below consensus," Danely wrote.
Both Intel (INTC) and AMD (AMD) fell fractionally in premarket trading to $36.22 and $100.87, respectively. 
In addition, Citi noted that notebook shipments in the third-quarter are likely to remain "sub-seasonal," as the firm's Taiwan notebook analyst expects shipments to be up 8% sequentially, below the normal double-digit growth that is usually seen, citing elevated inventory and the continued contraction in demand. 
Year-over-year, Citi expects notebook shipments to decline 17%, and there may be "still more downside to go should the macro conditions weaken further."
Last week, Bank of America said Intel (INTC) is likely the biggest beneficiary of the U.S. CHIPS and Science Act, but the firm warned it is not a "silver bullet" for the U.S.-based semiconductor giant.