Latest news with #HavivIlan
Yahoo
24-07-2025
- Automotive
- Yahoo
Texas Instruments CEO's tariff comments surprise investors
Texas Instruments CEO's tariff comments surprise investors originally appeared on TheStreet. It's the Alamo all over again. They say everything is bigger in Texas, and Texas Instruments () shares took a 10-gallon dive on July 23 after the semiconductor company issued weak earnings guidance and raised concerns about the Trump administration's tariffs. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰 "I think the situation of tariffs and geopolitics is rough on supply chains," Chief Executive Haviv Ilan said during the second-quarter-earnings call. "That's not over. True, that we're paused right now on the semiconductor tariffs, both in the U.S. and in China, but we have to be prepared for what the future may hold." "We want to make sure — and this is also the message to our customers — that we'll remain flexible," he added. In April President Donald Trump unveiled a sweeping series of tariffs that rattled the markets and sparked retaliation from several countries. Texas Instruments, which beat Wall Street's earnings and revenue expectations, is not the only company to recently note the impact of tariffs. TI: customer inventories low; company well positioned General Motors () executives said in the automaker's quarterly earnings call that tariffs cost the company $1.1 billion over three months, paring the company's profit margin to 6.1% from 9%. Stellantis () , the automaker that owns the Chrysler, Jeep, Dodge and Ram brands, paid about $387 million in tariffs over the last quarter. And production pauses — a strategy to avoid paying tariffs — contributed to a 6% year-over-year decline in the number of vehicles the company shipped to dealers, NPR reported. More Tech Stocks: Analyst who correctly predicted Rocket Lab stock surge resets forecast Verizon Q2 earnings report surprises with remarks on tax reform Fund manager who forecast Nvidia stock rally reboots outlook American steelmakers are also raising prices on the heels of the tariffs on steel and aluminum. Meanwhile, Trump on July 22 unveiled a deal with Japan that includes reciprocal tariffs of 15% on the country's exports to the U.S., according to CNBC. Auto duties reportedly were lowered to that level as well. In addition, the EU and the US are nearing a trade deal that would place 15% tariffs on most imports from the bloc, the Guardian reported. During the call, Ilan told analysts the "the semiconductor cycle is playing out." The chip industry historically has tended to boom-and-bust periods roughly every three to four years. However, analysts are reassessing the so-called silicon cycle amid geopolitical tensions and trade restrictions, particularly between the U.S. and China. "Cyclical recovery is continuing," Ilan said. "while customer inventories remain at low levels. In times like this, it is important to have capacity and inventory, and we are well-positioned." He said Q2 was likely a combination of "customers wanting to have a little bit more inventory because of tariffs, and also the cyclical recovery." Analyst: Texas Instruments EPS missed the mark "When customers make orders, they don't tell us why they want more parts," he said. "I would assume that some of it was for ... building a little bit of a of inventory on those shelves to protect themselves from tariffs." "I don't know how the third quarter will play out," Ilan continued, "but that's part of the way we are forecasting Q3."Investment firms issued research reports following TI's earnings report. Morgan Stanley analyst Joseph Moore lowered his price target on Texas Instruments to $197 from $205 and affirmed an underweight rating on the shares, according to The Fly. The June quarter was stronger than expected on strength in industrial, personal electronics, and communication infrastructure. But guidance for 4% growth is "seasonal at best" since for the second year in a row the company followed up a better-than-seasonal June quarter with weaker September-quarter guidance, the analyst said. TI said the automotive business hasn't yet started to recover and TI stock's valuation "leaves no room for error," Moore added. Susquehanna analyst Christopher Rolland lowered his price target on TI to $240 from $250 and maintained a positive rating on the shares. While the company reported better top-line results and guidance, the EPS outlook missed the mark. Additionally, management voiced caution on the pace of the cyclical recovery due to tariff-related uncertainty. TI executives struck a more cautious tone and said that outsized strength in Industrial and China might subside, Rolland said. And Truist raised its price target on Texas Instruments to $196 from $171 and reiterated a hold rating. Management characterized Q2 demand as strong, customer inventories as lean, and tariffs as mere noise. But unless TI delivers significant upside to Q3 guidance, or sales growth reaccelerates later, the Q2 result looks like peak growth this cycle, the firm Instruments CEO's tariff comments surprise investors first appeared on TheStreet on Jul 23, 2025 This story was originally reported by TheStreet on Jul 23, 2025, where it first appeared.
Free Malaysia Today
23-07-2025
- Business
- Free Malaysia Today
Texas Instruments shares sink as tariff risks cloud chip demand outlook
At least six brokerages cut their price targets on Texas Instruments' stock, while three raised them, according to LSEG data. (Texas Instruments pic) NEW YORK : Texas Instruments (TI) shares slumped nearly 12% in premarket trading today, after its quarterly profit forecast indicated a hit to demand for its analog chips that stoked investor fears of tariff-related disruptions. The dour third-quarter profit forecast contrasts with its earlier hopes for a strong rebound in chip demand, increasing concerns about tariff impacts and tempering investor confidence. In response to analysts' questions on a post-earnings call about whether tariffs were prompting customers to pull in orders and bumping up revenue, TI CEO Haviv Ilan said he 'can't rule out the possibility'. '(TI's) tone has shifted markedly vs last quarter's call as well as vs management's intra-quarter commentary, with seemingly more caution around the geopolitical and tariff environment,' said Bernstein analyst, Stacy Rasgon, adding that the shift 'felt somewhat sudden'. Chipmakers like TI are not directly affected by Trump's higher tariffs yet, but rising costs for chip-making tools and reduced spending by some customers are starting to have an impact. This was evident in the broader semiconductor industry, with both ASML, the biggest supplier of chip-making equipment globally, and TSMC, the world's biggest chipmaking factory, last week, warned about tariff-related uncertainty. 'The impact of tariffs/trade is beginning to emerge and we anticipate a continuation of a slightly weaker than seasonal demand environment as the year progresses due to the impact of tariffs,' said analysts at JP Morgan. Some analysts also expressed concerns about pressure to TI's margins due to the company's rising investments to expand its US manufacturing footprint. Following the results, at least six brokerages cut price targets on the stock, while three raised, as per data compiled by LSEG. The firm is up about 15%, while peer Analog Devices has gained around 11%, so far this year. TI has a 12-month forward price-to-earnings ratio of 34.66, compared to Analog Devices' 27.64.
Yahoo
23-07-2025
- Business
- Yahoo
Texas Instruments shares sink as tariff risks cloud chip demand outlook
(Reuters) -Texas Instruments shares slumped nearly 12% in premarket trading on Wednesday, after its quarterly profit forecast indicated a hit to demand for its analog chips that stoked investor fears of tariff-related disruptions. The dour third-quarter profit forecast contrasts with its earlier hopes for a strong rebound in chip demand, increasing concerns about tariff impacts and tempering investor confidence. In response to analysts' questions on a post-earnings call about whether tariffs were prompting customers to pull in orders and bumping up revenue, TI CEO Haviv Ilan said he "can't rule out the possibility". "(TI's) tone has shifted markedly vs last quarter's call as well as vs management's intra-quarter commentary, with seemingly more caution around the geopolitical and tariff environment," said Bernstein analyst, Stacy Rasgon, adding that the shift "felt somewhat sudden". Chipmakers like TI are not directly affected by Trump's higher tariffs yet, but rising costs for chip-making tools and reduced spending by some customers are starting to have an impact. This was evident in the broader semiconductor industry, with both ASML, the biggest supplier of chip-making equipment globally, and TSMC, the world's biggest chipmaking factory, last week, warned about tariff-related uncertainty. "The impact of tariffs/trade is beginning to emerge and we anticipate a continuation of a slightly weaker than seasonal demand environment as the year progresses due to the impact of tariffs," said analysts at J.P. Morgan. Some analysts also expressed concerns about pressure to TI's margins due to the company's rising investments to expand its U.S. manufacturing footprint. Following the results, at least six brokerages cut price targets on the stock, while three raised, as per data compiled by LSEG. The firm is up about 15%, while peer Analog Devices has gained around 11%, so far this year. TI has a 12-month forward price-to-earnings ratio of 34.66, compared to Analog Devices' 27.64.
CNA
23-07-2025
- Business
- CNA
Texas Instruments shares sink as tariff risks cloud chip demand outlook
Texas Instruments shares slumped nearly 12 per cent in premarket trading on Wednesday, after its quarterly profit forecast indicated a hit to demand for its analog chips that stoked investor fears of tariff-related disruptions. The dour third-quarter profit forecast contrasts with its earlier hopes for a strong rebound in chip demand, increasing concerns about tariff impacts and tempering investor confidence. In response to analysts' questions on a post-earnings call about whether tariffs were prompting customers to pull in orders and bumping up revenue, TI CEO Haviv Ilan said he "can't rule out the possibility". "(TI's) tone has shifted markedly vs last quarter's call as well as vs management's intra-quarter commentary, with seemingly more caution around the geopolitical and tariff environment," said Bernstein analyst, Stacy Rasgon, adding that the shift "felt somewhat sudden". Chipmakers like TI are not directly affected by Trump's higher tariffs yet, but rising costs for chip-making tools and reduced spending by some customers are starting to have an impact. This was evident in the broader semiconductor industry, with both ASML, the biggest supplier of chip-making equipment globally, and TSMC, the world's biggest chipmaking factory, last week, warned about tariff-related uncertainty. "The impact of tariffs/trade is beginning to emerge and we anticipate a continuation of a slightly weaker than seasonal demand environment as the year progresses due to the impact of tariffs," said analysts at J.P. Morgan. Some analysts also expressed concerns about pressure to TI's margins due to the company's rising investments to expand its U.S. manufacturing footprint. Following the results, at least six brokerages cut price targets on the stock, while three raised, as per data compiled by LSEG. The firm is up about 15 per cent, while peer Analog Devices has gained around 11 per cent, so far this year.
Reuters
23-07-2025
- Business
- Reuters
Texas Instruments shares sink as tariff risks cloud chip demand outlook
July 23 (Reuters) - Texas Instruments (TXN.O), opens new tab shares slumped nearly 12% in premarket trading on Wednesday, after its quarterly profit forecast indicated a hit to demand for its analog chips that stoked investor fears of tariff-related disruptions. The dour third-quarter profit forecast contrasts with its earlier hopes for a strong rebound in chip demand, increasing concerns about tariff impacts and tempering investor confidence. In response to analysts' questions on a post-earnings call about whether tariffs were prompting customers to pull in orders and bumping up revenue, TI CEO Haviv Ilan said he "can't rule out the possibility". "(TI's) tone has shifted markedly vs last quarter's call as well as vs management's intra-quarter commentary, with seemingly more caution around the geopolitical and tariff environment," said Bernstein analyst, Stacy Rasgon, adding that the shift "felt somewhat sudden". Chipmakers like TI are not directly affected by Trump's higher tariffs yet, but rising costs for chip-making tools and reduced spending by some customers are starting to have an impact. This was evident in the broader semiconductor industry, with both ASML ( opens new tab, the biggest supplier of chip-making equipment globally, and TSMC ( opens new tab, the world's biggest chipmaking factory, last week, warned about tariff-related uncertainty. "The impact of tariffs/trade is beginning to emerge and we anticipate a continuation of a slightly weaker than seasonal demand environment as the year progresses due to the impact of tariffs," said analysts at J.P. Morgan. Some analysts also expressed concerns about pressure to TI's margins due to the company's rising investments to expand its U.S. manufacturing footprint. Following the results, at least six brokerages cut price targets on the stock, while three raised, as per data compiled by LSEG. The firm is up about 15%, while peer Analog Devices (ADI.O), opens new tab has gained around 11%, so far this year. TI has a 12-month forward price-to-earnings ratio of 34.66, compared to Analog Devices' 27.64.
