Citi sees a major turnaround brewing in the analog chip sector, calling Texas Instruments (TXN, Financial) its top pick thanks to a compelling risk-reward setup. The sector has been through its second-worst correction in two decades, but with sales, margins, and earnings nearing pre-pandemic levels, analysts believe the bottom is in. While auto-related sales remain sluggish, industrial demand—which makes up about 35% of the market—is showing strong signs of recovery. Citi expects quarterly sales to climb 30% through 2026, with earnings per share potentially jumping 70% as the upcycle gains momentum.
Tesla (TSLA, Financial) is back in the spotlight after Cantor Fitzgerald upgraded the stock to overweight, seeing its current dip as a prime buying opportunity. With shares down 45% year-to-date, analysts are betting on upcoming catalysts to drive a rebound. Meanwhile, Nomura turned bullish on Xpeng, citing its improving EV pipeline and market share gains. In fintech, Compass Point initiated coverage on Robinhood (HOOD, Financial) with a buy rating, expecting rising crypto activity and regulatory tailwinds to boost growth.
Elsewhere, Barclays upgraded Mosaic (MOS, Financial) on expectations of a profit rebound after years of heavy investments, while TD Cowen sees Shell (SHEL, Financial) as the best-positioned European energy stock for stable shareholder returns. Nvidia (NVDA, Financial) remains a high-conviction play after bullish takeaways from its AI conference, reinforcing its dominance in the trillion-dollar AI infrastructure market. With multiple sectors flashing signs of recovery, investors are eyeing select opportunities that could deliver outsized gains.
