© REUTERS Citi is bullish on AMD stock after February notebook shipment statistics
On Tuesday, Citi maintained a $192 price target and reiterated a Buy rating on AMD (NASDAQ:). The affirmation was made as part of the company's analysis of US semiconductor stocks, which highlighted February's better-than-expected notebook shipments.
Although notebook PC shipments in February were down 2% from the previous month, business results were stronger than expected. Citi attributes this trend to a surge in demand for Dell's commercial PCs. The move is seen as a positive sign after a less-than-optimistic month in January, when notebook shipments were lower than expected.
Citi analysts revised their forecast for notebook PC shipments in the first quarter of 2024 from a 14% decline to a 12% decline sequentially. This latest forecast is significantly better than the typical seasonal slump of 17% and is influenced by new product introductions.
While February's numbers are encouraging, they follow a disappointing January. Citi expects this pattern of fluctuating monthly notebook shipments to continue through his 2024 as the PC recovery cycle stabilizes.
In addition to AMD, the company also maintains a neutral stance on Intel. Citi's 2024 calendar year EPS forecast for AMD is $2.75, below the consensus estimate of $3.40. Conversely, his EPS estimate for Intel is $0.81, beating the consensus of $0.55.