The global semiconductor industry is set to experience "groundbreaking changes," Citi said, naming stocks to play the theme. "We believe semiconductor architecture will evolve towards the direction of memory and logic integration for AI computing," the investment bank's analysts wrote in a May 17 research note. Here are six stocks from Citi's list, which stand out for having substantial upside potential, according to FactSet's consensus price targets.
and Ibiden Among the under-the-radar stocks on Citi's list is the Hong Kong-listed and Tokyo Stock Exchange-listed Ibiden . "We are positive on as we expect the company to benefit from increasing AI-driven demand for its advanced packaging solutions, notably for its TCB ," the bank's analyst Kevin Chen wrote. He noted that
is a leading supplier of TCB, adding that the company is expected to have more "meaningful AI-related contribution" in 2024 and 2025. The stock is included in the Franklin FTSE Hong Kong ETF . Meanwhile, Citi's optimism on Ibiden follows its "large market shares in high-end ABF substrates including for AI GPUs.