Investment firm Citi said Analog Devices (NASDAQ:ADI) and Texas Instruments (NASDAQ:TXN) are now its top picks in the semiconductor space ahead of a potential downturn, citing their “defensive nature.”

“High-end analog companies such as ADI and TXN historically outperformed during downturns and we would expect the same to occur amid our expected recession,” analyst Christopher Danely wrote in a note to clients. “With sales and units down roughly 25% from the peak, we believe the analog space should be relatively resilient in the event of a recession, given healthier inventory dynamics.”

Danely has a Buy rating on Analog Devices and Texas Instruments and price targets of $235 and $210, respectively.

Looking at earnings season, Danely said there should be “decent” guidance coming from companies, but companies could also lower their guidance on average by 10% as they digest the impact of tariffs. “Given our expectation of a recession, ADI and TXN are now our top picks, due to their outperformance in recessions,” Danely added.

Aside from Analog Devices and TI, Broadcom (AVGO) is the firm's third top pick (also with a Buy rating), as Danely said he expects its guidance to be cut less than the average. 

On the flip side, Danely cut his estimates the most for ON Semiconductor (ON), Intel (INTC) and GlobalFoundries (GFS) and expects companies like ON, GlobalFoundries and Micron (MU) to be the most at risk, given their low margin profiles.