Nvidia, Microchip, AMD 'most popular' chip stocks to own: Citi
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Nvidia (NASDAQ:NVDA), Microchip Technology (NASDAQ:MCHP), AMD (NASDAQ:AMD) and semiconductor equipment companies are among the "most popular" stocks in the chip sector to own, investment firm Citi said on Monday.
Analyst Christopher Danely noted that investor sentiment for the sector as a whole is slightly bullish but it's more bullish on individual names as "many bears [are] raising the white flag." 
"We believe there is a lot of FOMO out there, where bears are giving up and chasing stocks which lead to short squeezes," Danely wrote in an investor note, adding that much of the bear thesis is centered on a strong second-half outlook outlaid by companies. 
Conversely, Micron Technology (MU) and Intel (INTC) are among the least popular stocks to own, Danely added.
Danely, however, believes that management in the industry "may be overly optimistic." There is concern that markets such as automotive, data center and industrial could see more downside than is currently believed, with Danely citing evidence from Texas Instruments (TXN), ON Semiconductor (ON) and NXP Semiconductor (NXPI), all of which guided revenue from the industrial market to decline sequentially.
Earlier this month, it was disclosed that hedge fund Third Point had taken a passive stake in AMD (AMD), buying the position when shares "struggled."