Citi believes one semiconductor stock is now leading the space, and that stock is Advanced Micro Devices (AMD). The firm said AMD has gained strong investor support following its recent analyst day and now stands out with the strongest earnings growth outlook among key chip names.
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Across the rest of the chip sector, Citi said investor sentiment remains mixed. Nvidia (NVDA) is still seen as a major AI leader, but it is no longer the top pick. Broadcom (AVGO) is still widely owned, though some investors want more clarity on future growth. Meanwhile, Intel (INTC) is also getting renewed attention as sentiment slowly improves.
Why AMD Is Now the Top Pick
According to Citi analyst Christopher Danely, AMD had the strongest buying interest among investors following its recent Analyst Day. The company shared bold long-term targets and a strategy to lead the $1 trillion compute market.
These targets include a greater than 35% revenue compound annual growth rate (CAGR) and an adjusted EPS over $20. Danely said these goals, along with a stronger forward outlook, helped build confidence in AMD shares.
Overall, Citi believes AMD is well-positioned in key growth areas such as AI servers, data center CPUs, and new product launches, giving it an edge in the current semiconductor cycle.
Investors Reassess Major Chip Names
According to Danely, Broadcom is still a widely owned stock, but some investors want clarity on how much the company could benefit from selling TPU (Tensor Processing Unit) chips used for AI workloads. He added that sentiment may improve after Broadcom reports earnings next month.
Meanwhile, Nvidia, once the clear leader of the AI rally, has become less favored compared to AMD and Broadcom based on recent investor feedback. The main concern is that Nvidia’s earnings growth may not be as strong as in previous quarters.
Notably, Nvidia will report fiscal Q3 2026 results today, November 19. Wall Street expects the company to report earnings of $1.25 per share, up 53% year-over-year, and revenue of $54.85 billion, up 56% from the same period last year.
Some investors are turning more positive on Intel, thinking its server chip business is getting better. But Danely said he still doesn’t see the foundry business becoming profitable in the near term.
Which Chip Stock Is the Best Buy?
Turning to Wall Street, out of the four stocks mentioned above, Nvidia offers the highest upside potential at 34%, and carries a Strong Buy rating. AMD comes next with an expected upside of about 22% and a Moderate Buy rating.
Broadcom also holds a Strong Buy rating, though its upside potential is lower at around 17%. Meanwhile, Intel shows the smallest expected upside at just over 3%, and analysts currently rate the stock as a Hold.
