--- title: "Why Are Chip Stocks MU, SNDK, and AMD Falling Today? — Citi Says Buy the Dip" type: "News" locale: "en" url: "https://longbridge.com/en/news/293779936.md" description: "Chip stocks MU, SNDK, and AMD fell due to AI rally caution and Chinese competition. Citi advises buying the dip, citing growing data center demand and rising 2026-2027 revenue/earnings estimates. The bank prefers chip equipment makers over manufacturers, bolstered by increased capital spending from Intel, TSMC, and Tesla. Wall Street maintains Strong Buy ratings for Nvidia, Micron, SanDisk, AMD, WDC, and STX, with Micron showing the highest upside potential." datetime: "2026-07-24T16:13:38.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293779936.md) - [en](https://longbridge.com/en/news/293779936.md) - [zh-HK](https://longbridge.com/zh-HK/news/293779936.md) --- # Why Are Chip Stocks MU, SNDK, and AMD Falling Today? — Citi Says Buy the Dip Chip stocks fell on Friday, with Micron (MU), SanDisk (SNDK), and AMD (AMD) among the names trading lower. The drop came amid broader weakness in the chip sector, as investors grew more cautious about the recent AI-led rally. Memory stocks faced added pressure from rising competition from Chinese chipmakers such as CXMT and YMTC. Despite the sell-off, Citi sees the pullback as a buying opportunity, pointing to data centers, which now make up 34% of total chip demand. ### Claim 55% Off TipRanks SNDK has a long & short ETF? Explore SNXX & SNDQ ## **Why Does Citi Say Buy the Dip in Chip Stocks?** Citi says buy the dip because it expects data center chip demand to keep growing. In fact, the bank expects this market to become larger than today's entire chip market by 2030. Recent earnings also support Citi's bullish view. Among chip firms that have reported so far, Wall Street's 2026 revenue estimates have risen by 4%. Estimates for 2027 have increased by 7%. Earnings estimates are moving higher as well. EPS forecasts for 2026 and 2027 have risen by 7% and 8%, respectively. Still, Citi prefers chip equipment stocks over chipmakers. The bank believes rising spending on new chip plants and tools could give these firms a bigger boost. ## **Intel, TSMC, and Tesla Are Spending Billions on Chips** Citi pointed to recent spending plans from Intel (INTC), TSMC (TSM), and Tesla (TSLA) as a good sign for chip equipment firms. Intel raised its 2026 capital spending forecast to more than $20 billion from about $18 billion. Spending on chipmaking tools is expected to rise 40% from last year. Intel also expects its total spending to rise again in 2027. At the same time, TSMC raised its 2026 spending forecast to between $60 billion and $64 billion, up from about $56 billion. The chip giant cited stronger-than-expected AI demand as one reason for the increase. Meanwhile, Tesla also expects to spend more than $25 billion this year. Its spending is set to remain high over the next two to three years, with some of that money going toward chip production. For Citi, the higher spending plans from Intel, TSMC, and Tesla are a good sign for chip equipment firms, which the bank currently prefers over chipmakers. ## **Wall Street's Take on These Chip Stocks** According to TipRanks' Stock Comparison Tool, Nvidia (NVDA), Micron, SanDisk, AMD, Western Digital (WDC), and Seagate (STX) have Strong Buy consensus ratings. Intel has a Hold rating. Among these stocks, analysts see the most upside in Micron at 65.70%, followed by Nvidia at 46.68% and SanDisk at 34.94%. Intel offers 22.41% upside, while Western Digital and Seagate have 21.50% and 16.10% upside, respectively. 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