Chip Stock Gaps Lower on Lackluster Forecast

Core Viewpoint - Texas Instruments Inc (NASDAQ:TXN) is experiencing a significant stock decline despite reporting better-than-expected revenue for the third quarter, primarily due to a quarterly profit miss and a bleak fourth-quarter outlook [1]. Group 1: Financial Performance - The company reported better-than-expected revenue for the third quarter but still missed profit expectations, leading to a 4.7% drop in stock price to $172.31 [1]. - Analysts have expressed pessimism regarding TXN, with 21 out of 35 analysts giving a "hold" or worse rating, and at least 11 analysts have cut their price targets, including Mizuho reducing it from $150 to $145 [2]. Group 2: Stock Performance - If the current losses persist, TXN stock will end a five-day winning streak and could face its worst single-day percentage drop since July, with an 11.3% year-over-year deficit [3]. - The stock has recently fallen to its lowest level since May, influenced by pressure from the 20-day moving average [3]. Group 3: Options Activity - There is a notable unwinding of optimism in the options market, with a 10-day call/put volume ratio of 1.62, ranking higher than 95% of annual readings, which may exert further downward pressure on TXN [4]. - Today's options activity shows 40,000 calls and 39,000 puts traded, which is nine times the typical volume, with the November 180 call being the most active contract [5].