Nvidia’s stock took a massive hit after a disappointing earnings report and an antitrust investigation by the U.S. Department of Justice. The company’s dominance in the chip market is facing scrutiny, and September’s historical market weakness is also contributing to the downturn. Experts weigh in on the reasons behind Nvidia’s stock decline.
Intel has sold its stake in Arm Holdings, a British chip firm, as part of its ongoing restructuring efforts. The sale, estimated at $146.7 million, comes amid a series of strategic moves to revitalize the company. These include workforce reductions, dividend suspension, and a shift towards AI chips.
Baird has adjusted Texas Instruments’ (NASDAQ: TXN) financial outlook, increasing the semiconductor company’s price target to $175 from the previous $125. Despite this significant increase, Baird maintains a Neutral rating on the stock due to concerns about potential risks in the semiconductor industry, particularly around pricing dynamics. The firm acknowledges that inventory levels across the sector have hit record highs, but suggests that pricing may not be at immediate risk. Baird notes that the second quarter revenue guidance for Texas Instruments appears to be following normal seasonal trends, indicating some stabilization in end demand. However, the outlook for the second half of the year is critical, especially in terms of how it will impact inventory levels within the industry.
Investors are bracing for a potential further drop in Taiwan Semiconductor Manufacturing Co. (TSMC) stock, which has witnessed a sharp decline in recent days. The chipmaker’s stock has been on a downward trajectory since its April 11 earnings call, where it revised its growth forecasts for the semiconductor industry. These revisions reflect industry challenges and led to a market value loss of over $100 billion.
