ST Micro Guidance Signals Chip Sector Caution

3 days ago

Chloe Malle

"Yeah absolutely. So Micro is down this morning because it provided guidance that missed expectations. Um which kind of signals that the recovery in the chip industry is maybe not progressing as well as it was hoped. So that follows the update that we had earlier this week from Texas Instruments which is a US company in that sector as well and there and Texas Instruments said that uh customers were pulling back on orders because of trade tensions and because of a quite a shaky economy and that the industrial and automotive and markets for that chip se sector were particularly weak. So obviously it's dealing with a lot of challenges at the moment."

The segment on ST Micro emphasizes that its guidance missed expectations, contributing to a decline in its share price. The missed guidance reflects broader challenges in the semiconductor industry including weak orders amid trade tensions and economic uncertainty, particularly affecting the industrial and automotive sectors.

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