Bank foresees discharge in semiconductor spending and data centers, despite macroeconomic and geopolitical uncertainties
The recent devaluation of semiconductor actions, motivated by macroeconomic concerns and uncertainties about AI (Artificial Intelligence) investments, represents a purchase opportunity, according to.
The bank reviewed its projection for WFE (WAFERS) manufacturing equipment in 2025, estimating $ 103 billion – a 3% increase over the previous year. Growth is driven mainly by increasing demand for Nand memory and business SSDs.
This review occurs after conversations in the supply chain indicates greater investment in NAND technology, especially by foreign manufacturers. In addition, Citi estimates an expansion of local semiconductor production in China, strengthening the sector.
Even with fears about the demand for AI servers and GPUS export restrictions to China, the bank maintains an optimistic view.
The institution projects 40% growth in investments in data centers of major US companies in 2025 and 20% in 2026, driven by artificial intelligence and infrastructure expansion.
“We see the recent drop in the sector as a purchase opportunity”said Citi. The bank maintains a purchase recommendation for Klac and NVMI shares, highlighting LRCX as a promising option due to the strengthening of Nand spending.
Despite optimism, Citi warns of risks such as global economic slowdown, strong dependence on AI demand and geopolitical tensions. Its economists predict a slight contraction of global GDP by 2025.
Still, the bank sees growth potential in the semiconductor sector, driven by AI advancement and increased investments in data centers.
With information from Brazil.
