AMD Receives Positive Outlook from Citi Amid Surging Notebook Shipments
Positive Sentiment from Citi
Citi reiterated its Buy rating for AMD, setting a price target of $192, following a thorough analysis of the US Semiconductor market. The firm highlighted the exceptional performance of notebook shipments in February, surpassing expectations.
Rise in Notebook Shipments
Despite a marginal decrease of 2% in February, notebook shipments exceeded projections, showcasing resilience in the market. This positive trend is attributed to a heightened demand for Dell’s commercial PCs, signaling a promising shift after a less favorable January.
Revised Estimates and Forecast
Analysts at Citi have adjusted the first-quarter 2024 estimates for notebook shipments, forecasting a 12% decline compared to the initial 14% projection. This outlook, outperforming the typical seasonal downturn of 17%, is buoyed by the introduction of new products in the market.
Continued Fluctuations Expected
While the February figures bring optimism, they follow a disappointing January, indicating a pattern of fluctuating monthly shipment data throughout 2024 as the PC recovery cycle stabilizes, according to Citi.
Market Outlook for AMD and Intel
Aside from AMD, Citi maintains a Neutral stance on Intel in the market. The firm’s EPS projection for AMD in 2024 stands at $2.75, slightly lower than the consensus estimate of $3.40. Conversely, Citi forecasts an EPS of $0.81 for Intel, surpassing the consensus of $0.55.
