Chip stocks rally, Citi issues bullish forecast

Advanced Micro Devices

08/09/2026 18:27

** The PHLX semiconductor index .SOX rose 1.6% on Tuesday, outperforming the broader market
** Intel INTC.O leads gains, Advanced Micro Devices AMD.O not far behind 
** Citi issues bullish report on chips ahead of its 2026 Global TMT conference that starts Tuesday; focuses on AMD, INTC
** Raises CPUs' total addressable market estimate (TAM) to $237 billion by 2030, implying 52% CAGR vs $29 billion in 2025. 
** Brokerage notes its forecast surpasses TAM estimates of $100 billion, $220 billion and $200 billion from AMD, ARM Holdings ARM.O and Nvidia NVDA.O respectively.
** Says "more constructive on the innovation" in the server CPU space; expects "AMD to be the key beneficiary of the CPU renaissance and Intel as a secondary beneficiary."
** INTC leaps 9.8%, AMD rises 6.6% and ARM's U.S. shares gain 4.7% 
** Coherent COHR.N leaps 8.8%, rising as part of a broader rally in the optical technology sector 
** Lumentum LITE.O soars 12.6%, Applied Optoelectronics AAOI.O up ~8%   
     
     
     
     
     

 (Reporting by Sinead Carew)
 ((sinead.carew@thomsonreuters.com))