Citi on ON Semiconductor (ON), Micron (MU) and NXP Semiconductors (NXPI): 'We believe the short-term rally in semis is ending'

August 9, 2022 4:35 PM EDT
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Analyst Christopher Daly comments "We believe the short-term rally in semis is ending given the 25% run the SOX had combined with guidance cuts from Micron and Nvidia. Last month, we stated we expected the rally to last into August, but now we believe the short-term risk/reward on semis is no longer favorable given the positive catalysts are out and more negative catalysts are coming. Micron is the first company to mention weakness in the automotive and industrial end markets, and we would note Micron has been a leading indicator in the downturn all year. As a result, we are closing our positive catalyst watches on NXP and ON, and expect more signs of weakness in September. We reiterate our negative stance on semis and belief that every stock and every end market will correct."

  • Citi Closes Upside Catalyst Watch for ON Semiconductor (NASDAQ: ON) and NXP Semiconductors (NASDAQ: NXPI).

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