Latest news with #analogchips
Yahoo
5 days ago
- Business
- Yahoo
Why Analog Devices (ADI) Stock Is Trading Lower Today
What Happened? Shares of manufacturer of analog chips Analog Devices (NASDAQ:ADI) fell 3.2% in the morning session after a weak profit forecast from rival analog chipmaker Texas Instruments (TXN) sent ripples across the semiconductor sector. Texas Instruments, a major player in the analog chip space, announced it expected third-quarter earnings to be below analyst consensus at the midpoint of its guidance range. The company's soft forecast immediately weighed on investor sentiment for the entire sector, dragging down shares of competitors, including Analog Devices. The negative outlook from a key industry bellwether sparked concerns about a broader slowdown in demand, particularly from the automotive and industrial markets. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Analog Devices? Access our full analysis report here, it's free. What Is The Market Telling Us Analog Devices's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Analog Devices is up 8.6% since the beginning of the year, and at $229.62 per share, it is trading close to its 52-week high of $245.68 from July 2025. Investors who bought $1,000 worth of Analog Devices's shares 5 years ago would now be looking at an investment worth $2,051. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNA
6 days ago
- Business
- CNA
Texas Instruments slumps as tariff uncertainty weighs on demand
Texas Instruments' quarterly profit forecast failed to impress investors as it pointed to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty. Shares of the company slumped 11.4 per cent in extended trading on Tuesday. They have risen more than 13 per cent so far this year. Chipmakers such as Texas Instruments do not directly face U.S. President Donald Trump's elevated tariffs yet, but the cost of chip-making tools has risen, and some of their end customers have pared back spending. "Tariffs and geopolitics are disrupting and reshaping global supply chains," CEO Haviv Ilan said on a post-earnings call. "Automotive recovery has been shallow." TI expects third-quarter earnings between $1.36 per share and $1.60 per share, the midpoint of which was below analysts' estimates of $1.49 per share, according to data compiled by LSEG. It expects revenue between $4.45 billion and $4.80 billion, compared with market expectations of $4.59 billion. The chipmaker reported sales of $4.45 billion for the second quarter, beating estimates. ASML, the biggest supplier of chip-making equipment globally, warned last week that it might not achieve revenue growth in 2026, as uncertainty in tariff talks has spurred U.S. chipmakers to delay finalizing investments. TSMC, the world's biggest chipmaking factory, said last week that it was being conservative with its outlook to account for tariff-related disruption. In response to analysts' questions on a post-earnings call about whether tariffs were prompting customers to pull in orders and bumping up revenue, TI CEO Ilan said he "can't rule out the possibility." "When you see such a strong behavior in quarter two versus quarter one, you have to attribute some of it to the tariff environment," he said. Analysts also grilled TI executives on what they characterized as a change in tone in remarks from the previous quarter, when leadership had touted indications of a significant demand rebound, independent of tariff-related factors. "Management voiced caution as they saw some normalization of orders through the second quarter," said Summit Insights analyst Kinngai Chan. MARGIN PRESSURE TI has made big investments to expand its capacity for cost-effective 300-millimeter wafer manufacturing technology and plans to shell out more than $60 billion to expand its U.S. manufacturing footprint. The company also expects factory loadings in the third quarter to remain at the same level as the second quarter, which could hurt margins, Stifel analyst Tore Svanberg said, referring to the volume of chips being manufactured. Increasing factory loadings spreads out fixed costs over more output, typically improving margins. Svanberg said TI's stock fell post-market because "investors were expecting somewhat more, especially for the third quarter outlook," including for gross margins. CFO Rafael Lizardi said TI expects gross margin growth to be flat in the third quarter. The company's profit outlook does not include changes related to recently enacted U.S. tax legislation, TI said, after Trump signed into law a massive package of tax and spending cuts earlier this month. TI expects the new tax regime to result in a higher tax rate in the third quarter and through 2025, which will eventually decrease in 2026 and beyond, Ilan said.
CNA
6 days ago
- Business
- CNA
Analog chipmaker Texas Instruments forecasts third-quarter revenue above estimates
Texas Instruments forecast third-quarter revenue above Wall Street estimates on Tuesday, signaling recovering demand for its analog chips even as U.S. tariff negotiations lead to macroeconomic uncertainty. The company expects revenue in the range of $4.45 billion to $4.80 billion for the third quarter, compared with analysts' average estimate of $4.59 billion, according to data compiled by LSEG. However, its forecast for September quarter profit was just shy of estimates. The company expects earnings between $1.36 per share to $1.60 per share, the midpoint of which is below estimates of profit of $1.49 per share. Shares of the company fell 8 per cent in extended trading. The stock has rallied more than 13 per cent this year, with investor expectations running high on the hopes of a massive resurgence in the analog chip market. TI is the first among major U.S. chipmakers to report earnings for the June quarter, making its results closely watched. It is also hailed as a demand indicator for various industries given the widespread use of its chips.
Reuters
6 days ago
- Business
- Reuters
Analog chipmaker Texas Instruments forecasts third-quarter revenue above estimates
July 22 (Reuters) - Texas Instruments (TXN.O), opens new tab forecast third-quarter revenue above Wall Street estimates on Tuesday, signaling recovering demand for its analog chips even as U.S. tariff negotiations lead to macroeconomic uncertainty. The company expects revenue in the range of $4.45 billion to $4.80 billion for the third quarter, compared with analysts' average estimate of $4.59 billion, according to data compiled by LSEG.
Globe and Mail
10-06-2025
- Business
- Globe and Mail
Why Analog Devices Stock Cranked More than 2% Higher Today
A positive note from an analyst on Analog Devices ' (NASDAQ: ADI) niche in the chip sector sent the company's stock skyward on Tuesday. With that wind under its feet, Analog Devices floated to a more than 2% gain that trading session, easily topping the 0.6% bump of the S&P 500 (SNPINDEX: ^GSPC). Scuttlebutt in China That note was authored by Bernstein 's Qingyuan Lin, who addressed rumors in the market that Texas Instruments was planning to hike prices. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » According to reports, the pundit said that Bernstein's contacts in China -- where the American company has a large manufacturing presence -- have confirmed this speculation. He added that the rumors fueled optimism for analog chipmakers generally, and Analog Devices is a top name in that group. Lin cautioned, however, that the move might be Texas Instruments' attempt to boost its profit margins, rather than a reaction to a shortage of supplies. That being said, he noted that the analog segment could be on pace for an upcycle. In his view, this will be due mainly to inventory restocking. An upsurge could also result in higher margins for various players, not only Texas Instruments. Upswing incoming? This isn't the first note in recent days that has boosted sentiment on Analog Devices; last week, a Citigroup update on the wider semiconductor industry tagged the company as one of its two top picks in the sector. The bank pointed out that "semi" sales were up a robust 24% year over year in April, and selling prices have seen narrower declines than expected. We might indeed be witnessing the start of an upcycle, and if so, Analog Devices would be a good play on that dynamic. Should you invest $1,000 in Analog Devices right now? Before you buy stock in Analog Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Analog Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $660,341!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $874,192!* Now, it's worth noting Stock Advisor 's total average return is999% — a market-crushing outperformance compared to173%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
