Texas Instruments Stock Leads Analog Chip Shares Lower

Group 1 - Texas Instruments (TXN) shares fell over 7% to close at 185.52, making it the worst-performing stock in the S&P 500, following a disappointing profit forecast that raised concerns about a slower recovery in the analog chip market [1][6] - Other analog chipmakers such as Microchip Technology (MCHP), Analog Devices (ADI), Onsemi (ON), and NXP Semiconductors (NXPI) also experienced losses, contributing to a decline in the tech sector and the S&P 500 index, which was down 0.3% [2][6] - Jefferies analysts indicated that Texas Instruments' outlook suggested the analog chip market may not have reached a bottom, with over 70% of its products sold into the auto and industrial markets, which are still facing challenges [3][6] Group 2 - Analysts believe that while a recovery for the analog segment could occur later this year or next, Texas Instruments' increasing spending and inventory levels may pose significant headwinds, impacting margins [4] - Morningstar's Brian Colello raised his price target for Texas Instruments to 185 from $175, describing the situation as a "near-term reckoning" but expressed confidence in the company's long-term trajectory due to investments in higher-margin chips [5] - Among analysts polled, seven out of twelve gave Texas Instruments a "hold" rating, with a consensus price target of approximately$205, suggesting an upside of nearly 11% [6]