Micron leads chips higher as Citi reiterates favoritism once downturn ends
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Micron Technology (NASDAQ:MU) led S&P 500 semiconductor stocks higher on Monday after Citi reiterated it is one of the firm's favorite chip stocks to own once the current downturn ends.
In a note to clients, Citi analyst Christopher Danely said the firm is still "defensive" on the sector following an earnings season that featured a number of "negative" revisions, but that Micron (MU), along with AMD (NASDAQ:AMD), ON Semiconductor (ON) and GlobalFoundries (GFS) are the semiconductor stocks to own after the slide.
Currently, the firm's favorite semiconductor stock is Analog Devices (NASDAQ:ADI), even as there are several positive signs for the broader industry, including the stabilization of PC sales, AI driving growth and the fact that the handset market looks "close to a bottom."
Micron (MU) shares rose nearly 5% shortly before 2:30 p.m. EST, while AMD (AMD), ON (ON) and GlobalFoundries (GFS) gained 1.7%, 0.8% and 1.7%, respectively.
Analog Devices (ADI) also traded higher, adding 1.6%.
In a separate note, Citi reiterated its neutral ratings on AMD (AMD) and Intel (INTC) after April notebook data showed shipments fell 24% month-over-month. 
Intel (INTC) shares rose nearly 2% on Monday.
Western Digital (NASDAQ:WDC) shares surged more than 10% after it was reported that discussions with Kioxia Holdings are speeding up and getting closer to a deal following the memory chip downturn.
Seagate (STX), which competes with Western Digital (WDC), rose more than 5% following the news.
Lattice Semiconductor (LSCC) shares rose more than 2% after the company said in an investor presentation that it was looking for annual revenue growth between 15% and 20% over the next three to four years.
In addition, the company said it was targeting gross margins in the low 70% range, with operating income growth around 40%.
Other semiconductor stocks were higher on Monday, including gains of 1% or more for Nvidia (NVDA), Texas Instruments (TXN), Qualcomm (QCOM) and NXP Semiconductors (NXPI).
Smartphone linked semiconductor stocks also traded higher, as Skyworks Solutions (SWKS) and Qorvo (QRVO) added 1.7% and 1.9%, respectively.
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