TI downgraded to sell rating amid capacity concerns
"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.
Texas Instruments Weak Outlook Amid Macro Uncertainties
"Yeah, there you go. Texas Instruments, well that's a name I haven't heard in a while. >> Yeah, and shares are not doing well this morning. So, Texas Instruments sticker TXN, those shares are down just over 6% at the moment because we did get uh an outlook update from them. So, they're saying that uh the current period forecast uh is raising questions over whether this recovery in chips is sputtering because they say that uh the EPS EPS outlook for the current period is going to be below estimates. Topend revenue outlook just slightly above the average forecast. and their CEO Hav Haviv Alam saying that their industrial customers are taking a quote wait and see approach when it comes to their factory expansion plans because of the macro backdrop. As we know there are tariffs in play here that could potentially be um affecting those investment plans."
The commentary on Texas Instruments (TXN) notes a subdued market response with shares down over 6% following a cautious outlook update. The company cited below-estimate EPS guidance and a wait-and-see stance from its industrial clients, potentially due to macroeconomic headwinds and tariffs.
Texas Instruments Forecast Disappoints
"Texas Instruments is down 7.7% in the pre-market. This is the biggest maker of analog chips. They gave a disappointing forecast for a second quarter in a row. It's just adding to concerns that the turnaround for the analog chip sector is sputtering. The CEO saying customers are still in a wait and-see approach to their chip demands, to their capital expenditures as tariff uncertainty continues to slow down business decisions. They highlighted particular weakness in autos and in their China business."
Texas Instruments reported a disappointing Q2 forecast, with weak demand in autos and China, attributed partly to tariff uncertainties and cautious customer spending.
Texas Instruments EPS Miss Leads to After-Hours Drop
"Another miss when it comes to third quarter EPS missing estimates coming in at a $148 in the third quarter. The consensus had been for $149. When it comes to fourth quarter revenue, the guide is for $4.22 billion to $4.58 billion, with the average coming in at the low end below the estimate. You can see Texas Instruments shares down about 4% in the after hours trade."
The commentary outlines that Texas Instruments reported an EPS miss, with third quarter EPS at $148 against a consensus of $149, and fourth quarter revenue guidance pointing to the lower end of estimates. This led to a roughly 4% decline in after-hours trading, reflecting investor disappointment with near-term earnings performance.