Texas Instruments’ forecast sees chip stocks drop

Statement sends shiver through semiconductor sector

                                

Shares in semiconductor manufacturers slipped after Texas Instruments released a poor forecast.

Texas is among the first chip makers to release quarterly results. These “below-seasonal forecasts” raised fears that the sector may be heading for a dip. TI shares dropped 13 per cent this week, its biggest fall in 11 years, rebounding slightly.

Investors have poured money into chip stocks this year, reports Bloomberg, betting on a rebound in demand. That hasn’t happened, in part due to global economic friction.

“Trade tension is making customers far more cautious,” the firm stated. Companies are cutting back on orders as they wait for China and the US to reach a definitive trade agreement, said chief financial officer Rafael Lizardi.

US investment bank Morgan Stanley has said that the issues extend beyond Texas Instruments. “For us, this is a definitive indicator of demand conditions for broader based distribution-based businesses, not something specific to TI – and is consistent with our cautious view on the sector,” said analyst Joseph Moore.

The forecast and comments led to sell-off in semiconductor stocks.

FURTHER READING: Bitmain opens 25 megawatt cryptocurrency mining facility in Texas

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image