What Happened?
Shares of analog chip manufacturer Texas Instruments (NASDAQ: TXN) fell 4.5% in the morning session after its Chief Financial Officer cautioned that the recovery in chip demand is not snapping back as strongly as some investors had hoped.
The comments were made during a presentation at Citi's 2025 Global Technology, Media and Telecommunications Conference, where the company noted a gradual recovery across its markets. Management specifically acknowledged challenges within the automotive sector, tempering expectations for a swift rebound. This cautious outlook from a key executive prompted a significant sell-off, with Texas Instruments leading losses among chipmakers in the Nasdaq 100 and weighing on the broader semiconductor industry.
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What Is The Market Telling Us
Texas Instruments’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock gained 4.8% on the news that a Bernstein research report revealed the company is planning significant price increases on thousands of its products, signaling a strategy to boost margins. The move follows a Bernstein research report published Tuesday, which indicated that Texas Instruments is planning price increases of 20% to 50% on 10,000 to 20,000 products.
According to the research firm, this is a strategic effort to improve margins rather than a reaction to market conditions. This company-specific news is amplified by broader positive sentiment in the semiconductor industry. Last week, the U.S. government announced that chipmakers with domestic manufacturing capacity, such as Texas Instruments, would be exempt from potential 100% tariffs on semiconductors. This exemption has removed a significant uncertainty for investors, boosting confidence in the sector.
Texas Instruments is up 0.5% since the beginning of the year, but at $187.83 per share, it is still trading 15.1% below its 52-week high of $221.25 from July 2025. Investors who bought $1,000 worth of Texas Instruments’s shares 5 years ago would now be looking at an investment worth $1,337.
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