According to Citi analysts, there are potential upside catalysts for NVIDIA, Microchip Technology, and Intel. For NVIDIA, the investment bank identified the company’s pullback following the GTC event as a catalyst for a potential increase. Recent discussions within the supply chain have indicated strong demand visibility extending into the first half of 2025. With GPU unit outlook well aligned with the bank’s base case model, Citi expects positive supply chain commentary during upcoming events such as earnings announcements and Computex Taiwan, where NVIDIA’s CEO is scheduled to deliver a keynote.
Microchip Technology (MCHP) is expected to see a boost from its upcoming earnings, according to Citi. Despite a 4% underperformance compared to peers year-to-date, the bank anticipates MCHP to outperform during the earnings season based on negative sentiment and positive commentary on 2H24 bookings. With sales down 40% from its peak, Citi expects to hear more positive updates on the second half of 2024 bookings.
Intel (INTC) is also experiencing catalysts due to earnings. Although the stock has been down approximately 29% year-to-date, Citi attributes this negative sentiment to the company’s foundry business losses. However, Citi remains optimistic based on positive March notebook data showing a significant month-over-month increase, possibly resulting in an upside to Consensus estimates. As Intel derives around 31% of its revenue from notebook CPUs, Citi expects the stock to trade higher in response to these developments.
