Earnings will be strong this year supported by secular economic trends, says Citi's Drew Pettit

Watch on YouTube ↗  |  April 24, 2026 at 18:57  |  4:03  |  CNBC
Speakers
Drew Pettit — Research Director of U.S. Equity Strategy and ETF Strategy, Citi

Summary

Drew Pettit, Citi U.S. equity strategist, discusses a strong earnings year supported by secular trends, highlights semiconductors as a real growth story driven by AI and supply constraints, and advises caution on defense stocks due to pricing power issues. The interview covers specific stocks but focuses on sector-level themes.

  • Drew Pettit expects strong earnings year supported by secular trends.
  • He views semiconductors as a real growth story driven by AI build-out and supply constraints.
  • He distinguishes semiconductors from cyclical stocks, citing hyperscaler buyers.
  • He advises caution on defense stocks due to inability to pass through costs.
  • He prefers industrials that can pass through costs and maintain margins.
  • The interview covers various stocks including NVIDIA, Micron, Palantir, etc., but no specific investment theses beyond semis and defense.
Ideas
Drew Pettit Research Director of U.S. Equity Strategy and ETF Strategy, Citi 0:58
Semiconductors are a growth story with supply constraints.
The semiconductor story is real due to AI build-out, supply constraints, margin expansion, sales growth outpacing assets, and markets rotating to supply-constrained areas. It is a growth story, not cyclical, with hyperscaler buyers providing stability.
SMH HIGH
Drew Pettit Research Director of U.S. Equity Strategy and ETF Strategy, Citi 3:34
Defense names cannot pass through costs.
Defense names have priced in a lot of expected growth and cannot pass through cost increases because their buyer (government) has power, making the sector unattractive.
ITA MED
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This CNBC video, published April 24, 2026, features Drew Pettit discussing SMH, ITA. 2 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Drew Pettit  · Tickers: SMH, ITA