TI downgraded to sell rating amid capacity concerns

about 1 month ago

Valerie Titel

"Texas Instruments on a back foot down at 2.7% in pre-market trade. Uh so this is on the back of a downgrade by Goldman, but TI it's less exposed to the AI chip market. It's the biggest player in the analog chips nonetheless. Now while Goldman is positive on the analog chip market next year, they have downgraded TI to a sell rating from a buy rating, predicting a 13% potential downgrade downside next year. and they're warning of a lack of margin expansion and earnings recovery relative to its peers. Warning that they've built too much capacity and have continued to build inventory on its balance sheet which is now at at record levels."

The segment highlights that Texas Instruments is under pressure after a Goldman downgrade to a sell rating, forecasting a 13% downside next year. The commentary emphasizes TI's challenges with excess capacity and rising inventory despite its strong position in analog chips, suggesting caution for investors.

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