Texas Instruments Stock Leads Analog Chip Shares Lower | Global News Avenue

Texas Instruments (TxN) shares fell on Friday, leading other analog chipmaker stocks lower and weighing on the major indexes.

Texas Instruments is the worst-performing stock S&P 500shares fell more than 7% to close at $185.52 on Friday. The move comes a day after the company Disappointing profit forecast The concern is that the analog chip market may face a slower than expected recovery.

Microchip Technology Stock (MCHP), analog device (Adi)Onesemi(exist) and NXP Semiconductor (nxpi), also lost its position, the technical department delayed Benchmark index is lower. The S&P 500 fell 0.3%, while the technology-heavy Nasdaq lost 0.5%.

Jefferies analysts said Texas Instruments’ outlook has been dashed on hopes it will recover, suggesting the cycle may not have reached a bottom yet and that the automated sector “is still correcting further with no signs of industrial recovery yet.” According to Jefferies ), more than 70% of Texas Instruments products are sold into the automotive and industrial end markets.

Analysts believe a recovery in the analog segment could still come later this year or next, but warn that spending on Texas tools and growing inventories could be bigger headwinds than expected, which could weigh on margins. pressure. Jefferies maintained a “hold” rating and a $185 price target on the stock.

Morningstar strategist Brian Colello raised his price target to $185 from $175, calling the Texas Instruments “a somewhat near-term estimate” after multiple stock builds, but said he remains confident in the company’s trajectory. , it added. In the long run, investments in high-margin chips can pay off.

As of Friday, seven of the 12 analysts surveyed by Visible Alpha had “hold” ratings, while three analysts had “buy” and two “sell” ratings. Their consensus price target is around $205, which would suggest upside potential of close to 11%.