Citi reaffirmed its stance on AMD (NASDAQ:AMD) and Intel (NASDAQ:INTC) after December notebook shipments surpassed the firm's forecasts. "December notebook shipments rose 8% month-over-month, outperforming our expectations of a 4% increase," analyst Christopher Danely wrote in a client note.
He attributed the growth to new product launches and demand ahead of Chinese New Year and possible tariffs. Despite a 7% quarter-over-quarter decline in notebook shipments, the figures exceeded Danely's forecast of an 8% drop, although they trailed the typical seasonal 2% increase.
Danely kept his Buy rating on AMD and a Neutral rating on Intel, highlighting expectations for a 10% sequential decline in notebook shipments in Q1 2025, better than the usual 14% drop. This outlook aligns with Citi's view of continued sluggish PC demand. The better-than-expected December performance provides some optimism, but the overall market remains under pressure amid softer demand trends, Citi noted.
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