The semiconductor space is never boring, but it’s getting more interesting as evidence mounts that the industry is coming off a peak. Evidence of inventory-building is likely to mount as the year goes on and orders are likely to shrink, leading to a correction in 2023-2024, and the global shock from the Russian invasion of Ukraine isn’t helping. On top of that, it’s getting more and more expensive to add capacity.
My not-so-positive outlook on Texas Instruments (TXN) hasn’t always been the most popular call with some commenters, but the results are what they are – the company has continued to lag the SOX since my last update (down 11% versus down about 1%), as well as chip stocks I’ve preferred like Broadcom (AVGO), ON Semi (ON), Renesas (OTCPK:RNECY), and STMicro (STM).
At this point, TI still isn’t a preferred name for me, as I still see more upside in names like STMicro and less end-market risk at Broadcom. Should this slide continue and TI drops into the $150’s in the near term, though, that’s a different story for another day.
Read more here:
Texas Instruments Paying To Grow, But There Are Challenges Ahead
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