📉 Texas Instruments shares face pressure: Analysts warn of increased stock and weaker demand!
Texas Instruments $TXN, a well-known analog chipmaker with a history of more than 90 years, has posted an unfavorable outlook for the first quarter. This forecast brought disappointment to investors, which led to a stock drop of more than 7 % during trading on Friday. 📉
🔎 What's behind the problems?
The automotive and industrial markets, where TIchips are widely used, are seeing a slowdown in demand due to excess inventory. These built up during the pandemic and are now complicating supply chains. Moreover, although the Chinese automotive market is showing some signs of growth, this is not enough to offset the decline in US, Europe and Japan.
🛠Impact on production and profits
Increased inventory levels have forced TIto reduce factory utilization and thus production volume, which has a short-term impact on gross margins. However, fourth quarter sales reached $4.01 billion, beating expectations (USD 3.88 billion), but the coming quarter is proving to be very challenging. The company expects earnings between 94 cents and $1.16 per share, below expectations of $1.17.
🛑 When will the market recover?
Analysts say the automotive and industrial markets have so far "have not bottomed out. There are questions about whether and when there will be a recovery in demand for analog chips, and the company has not yet provided any concrete signs of optimism.
👉 What is your opinion of this company? In your opinion, is the automotive industry at a low point, or could it get worse?
I have $VOW3.DE in my portfolio and I don't want to buy another stock that has anything to do with the auto sector.
The auto industry is doing very badly right now, but we could take advantage of that and buy stocks at low prices.
Great company. But expensive at the moment. But it's a flagship company for the sector. I don't think anyone's going to make a big mistake here.