Texas Instruments Signals Semiconductor Recovery Looming
Wall Street analysts are optimistic about a semiconductor industry rebound, citing positive data from Texas Instruments’ (TXN) first-quarter earnings and guidance.
J.P. Morgan analyst Harlan Sur upgraded his rating to Overweight and raised his price target to $195, noting the company’s strong momentum. He projects a continued recovery throughout the year and into 2025.
Despite revenue declines across all markets, Texas Instruments expects some customers to exhaust their inventory corrections soon. Chief Financial Officer Rafael Lizardi cited the company’s short lead times as a factor mitigating inventory concerns.
Analysts from Bank of America also expressed optimism, highlighting the company’s outlook for the coming quarter. They raised their earnings per share estimates for 2024 and 2025, citing improved gross margins.
T. Arcuri from UBS reiterated his Buy rating, predicting earnings per share to reach $8 by 2025 due to CHIPs Act grants. He emphasized that gross margins and estimates have bottomed out and should show improvement.
Texas Instruments’ guidance for the second quarter suggests a return to normalcy. The company expects earnings between $1.05 and $1.25 per share and sales between $3.65B and $3.95B.
