Intel, AMD 'most popular' topics among semi investors, Citi says
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Investment firm Citi said on Monday that Intel (NASDAQ:INTC) and AMD (NASDAQ:AMD) are the "most popular" topics amongst investors, with indications that investors are positive on the Pat Gelsinger-led company as it transitions to focusing on its foundry ambitions.
"The most popular topics were Intel and AMD where we get a sense that some investors [mostly hedge funds] are positive on Intel based on the company regaining the lead in manufacturing and success in foundry while on AMD there appears to be investors on both sides given the Xilinx business is falling off and concern the MI300 ramp is getting pushed out," Citi analysts, led by Christopher Danely, wrote in an investor note.
The analysts added that they are skeptical whether Intel (INTC) can achieve success in foundry, as it goes up against companies like Taiwan Semiconductor (TSM) and GlobalFoundries (GFS). However, they added that the company could regain its manufacturing lead, which would cause Citi to become more positive on Intel.
For AMD (AMD), Citi said there was a "fair amount of discussion" amongst investors that its Xilinx business is "falling off" and concern that the ramp of its MI300 chip is being pushed out. 
Citi, for its part, said it expects AMD to generate more than $1B in MI300 revenue next year. 
Investors were also negative on semiconductor capital equipment, due to concern about "weak" leading edge foundry demand, as well as the impact from Samsung's (OTCPK:SSNLF) memory utilization cuts.
Investors are still negative on Micron Technology (MU), which Citi has repeatedly said is its top pick amongst semiconductors, as well as a coming correction for analog, which would impact companies like NXP Semiconductors (NXPI), Texas Instruments (TXN) and Analog Devices (ADI).

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