New leader board: Citi refreshes AI compute semiconductor picks

Investing.com -- Citi analysts have updated the firm’s AI compute semiconductor stock rankings following the latest quarterly earnings updates, telling investors in a note that AI compute demand remains undersupplied.

The bank highlighted the recent AWS EC2 GPU instances price hike of 20%, noting that DRAM Memory shortages are the “biggest constrain on compute supply, as evident by multiple strategic customer agreements signed through 2030 by Micron.”

“As such, our updated rankings assign the highest weight to memory supply allocation among other factors like accelerator, CPU and diversified hyperscale sales exposure,” Citi wrote.

Among mega-caps, Nvidia has taken the top spot, with Citi highlighting strong HBM partnerships, while Broadcom is in second place and Micron at third.

For large caps, AMD is ranked first, with Citi noting that it is served by Samsung, Micron and CBRS, “which employs different on-chip SRAM vs HBM.”

AMD is followed by CBRS, Intel and Marvell Technology, with Qualcomm last, despite its recent high bandwidth compute announcement, which “uses a stack of LPDDR memory due to limited allocation until 2029.”

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