Citi analysts revealed in a new note that Broadcom (NASDAQ:AVGO) has emerged as the most favored long position among semiconductor investors, surpassing Nvidia (NASDAQ:NVDA), based on feedback from their client meetings.
Citi’s Semiconductor Long Book
Broadcom (AVGO)
Top pick: “Clearly the most popular long,” said Citi, citing Broadcom’s strong positioning in AI, recurring software revenue, and defensive qualities.
Nvidia (NVDA)
Second place: Still highly regarded, but with a “reasonable drop off” in investor interest compared to Broadcom.
Defensive Alternatives
Analog Devices (ADI)
Viewed as a defensive play thanks to high margins and a diversified business model.
KLA (KLAC)
Favored for its leading edge wafer fabrication equipment (WFE) exposure and share gains at TSMC.
Popular Shorts
Texas Instruments (TXN)
The most common bearish bet, driven by concerns over potential China tariffs affecting analog semiconductor demand.
Qualcomm’s Quiet Upside
Under-the-Radar: Qualcomm (NASDAQ:QCOM) “did not come up at all” in investor conversations, suggesting low sentiment.
Positive Catalyst Watch:
Citi raised Q2 sales estimates to $11 billion and EPS to $2.45, both well above consensus, on stronger-than-expected handset demand in China.
Sector Performance Tracking
To monitor how these semiconductor names are performing relative to the broader market and historical sector trends, investors can leverage the? Sector Historical Market Overview API from Financial Modeling Prep.This API provides historical performance data and trends for the semiconductor sector, helping to contextualize current investor preferences and positioning.
This Citi client survey underscores a shift in sentiment within the semiconductor space, with Broadcom’s blend of AI exposure and stable software revenue making it the standout favorite among institutional investors.
