Stocks: Nvidia, Intel, and AMD are at risk if this Citi prediction is right

There are at least two things market participants are bearish on as summer draws to a close: Bed Bath & Beyond stock (despite this week’s bounce) and the entire semiconductor space.

The closely watched Philadelphia Semiconductor Index (SOX) is down nearly 30% year to date, under-performing the S&P 500’s 15% drop. Analysts blame a sharp downturn in PC demand post COVID-19 pandemic for semi stock weakness. Rising interest rates have also damaged sentiment around often hot momentum names in the space such as AMD and Nvidia.

And if Citi chip analyst Chris Danely is correct in a new note to clients, chip stocks could be at risk for a fresh leg down.

Here’s Danely’s call:

“Consensus estimates declined during earnings season for the first time since the pandemic driven by the PC and handset slowdown amidst the recession. We also witnessed the first signs of a correction in the automotive and industrial end markets and we continue to believe we are entering the worst semiconductor downturn in…

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