Nvidia $NVDA Reaffirmed as Top Semiconductor Pick by Citi Analyst with $820 Price Target Amidst AI Market Growth

Analyst Christopher Danely from Citi reiterated Nvidia $NVDA as a top pick in the semiconductor sector, emphasizing its potential amidst the growth of the AI market. He assigned a price target of $820 for the stock.

Despite a 17% decrease in consensus estimates for semiconductors during earnings season, Danely suggested that this decline is not a significant concern.

Danely identified valuation as a prominent risk for semiconductor stocks, while acknowledging mixed demand trends. However, he anticipates a minimum 11% year-over-year growth in semiconductor revenue for 2024, citing a substantial 19% decline in units in 2023.

Danely also highlighted positive developments for semiconductor equipment firms and the DRAM market.

Furthermore, Citi designated Micron Technology ($MU) as its top semiconductor pick alongside Nvidia.