Citi names Broadcom, Texas Instruments, and Applied Materials top chip picks - Investing.com Australia

Citibank has identified Broadcom, Texas Instruments, and Applied Materials as top chip stock picks in its latest investment analysis. This rating reflects these companies' leading positions and growth... Read original →

Citi’s endorsement of Broadcom, Texas Instruments, and Applied Materials reflects a strategic bet on three structural pillars: AI-optimized custom silicon, analog chips for industrial IoT, and irreplaceable advanced fab equipment. Broadcom’s vertical integration in AI accelerators and 5G baseband is forcing Qualcomm and MediaTek to fast-track in-house NPUs. TI’s automotive-grade analog portfolio—boasting decade-long product lifecycles—has deepened client lock-in across Taiwan, China and Southeast Asia amid supply chain bifurcation. Applied Materials, commanding over 60% share in post-EUV deposition and etch tools, stands as the silent beneficiary of TSMC and Samsung’s aggressive capacity expansions. While U.S. export controls raise compliance overhead, all three have mitigated disruption risk through redundant manufacturing in Mexico and Malaysia. Over the next 18 months, HBM4 adoption and sub-3nm ramp will convert capex into earnings faster for these players than for peers riding speculative narratives.