© Reuters
On Friday, Citi maintained its stance on the shares of Intel Corporation (NASDAQ: NASDAQ:) and Advanced Micro Devices, Inc. (NASDAQ: NASDAQ:) following a report on January’s notebook shipments. The data indicated a 16% month-over-month decrease in notebook shipments, which was slightly below the expectations set by the firm. Citi’s notebook analyst has revised the first-quarter forecast for 2024, predicting a 14% quarter-over-quarter decline, which is still more optimistic compared to the typical seasonal decrease of 17%.
The report comes in the wake of both Intel and AMD anticipating a seasonal downturn in their PC businesses for the first quarter of 2024. Despite these projections, Citi’s analysis suggests that the recovery in the PC market could face challenges throughout the year due to persistently weak demand.
Citi has decided to uphold a Neutral rating on Intel’s stock, suggesting a cautious outlook on the company’s performance in the current market environment. In contrast, the firm continues to endorse a Buy rating for AMD, indicating a more favorable view of the company’s potential in the face of the same industry headwinds.
The updated forecast by Citi’s notebook analyst, Carrie Liu, reflects a slight adjustment from the previous expectation of a 12% decline to a 14% drop in notebook shipments for the first quarter of 2024. This alteration is made despite a somewhat easier comparison base, which typically would suggest a more significant seasonal decline.
The maintained ratings on Intel and AMD by Citi reflect the firm’s assessment of the companies’ prospects against the backdrop of the latest shipment data and broader market trends. The Neutral and Buy ratings indicate differing levels of confidence in the two tech giants’ abilities to navigate the anticipated industry slowdown.
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