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

Citigroup's latest investment analysis has identified Broadcom, Texas Instruments, and Applied Materials as top chip picks, reflecting the bank's deep insights into current semiconductor industry tren... Read original →

Citi’s endorsement of Broadcom, Texas Instruments, and Applied Materials reflects a strategic bet on the semiconductor value chain’s full-cycle recovery—from equipment deployment to end-market monetization. Technically, Applied Materials gains from sub-3nm capacity ramp-ups, spurring demand for advanced packaging and EDA tools; Broadcom’s dominance in AI networking chips is provoking NVIDIA to accelerate in-house alternatives; TI’s automotive-grade analog portfolio leverages high margins and decade-long design cycles to lock in industrial clients. Geopolitically, tightening U.S. export controls compel all three to reroute logistics away from Taiwan, China and Hong Kong, China, potentially raising operational costs by 5–8%. Rivals like AMD and MediaTek may deepen ties with Samsung and SK Hynix to circumvent equipment restrictions. Over the next 18 months, capex will tilt toward mature nodes—favoring TI and Applied Materials—while Broadcom faces inventory risks from bespoke ASIC overcommitments.