Yazılar

STMicro Forecasts Weak Q4 Sales as Automotive Demand Falters

/in /tarafından

European chipmaker STMicroelectronics projected fourth-quarter revenue below market expectations, citing soft demand from the automotive sector that offset gains in other markets. The company expects revenue of $3.28 billion for the quarter, compared to analyst forecasts of $3.34 billion, according to LSEG data. Shares fell nearly 8%, making STMicro the worst performer on France’s CAC 40 and Italy’s FTSE MIB indexes.

The Franco-Italian firm, which counts Tesla and Apple among its top customers, said weaker sales to a major electric vehicle client — widely believed to be Tesla — weighed on results. CFO Lorenzo Grandi confirmed that lower demand for silicon carbide chips, used in EVs, led to reduced capital spending plans for 2025. STMicro now plans to invest slightly under $2 billion, down from its previous $2–2.3 billion range.

Analysts from JPMorgan described the current semiconductor recovery as “very muted,” despite signs of improvement in imaging sensor and microcontroller sales. STMicro also reiterated that its cost-cutting program remains on track following resistance in Italy.

Texas Instruments Shares Fall 6% as Weak Outlook Points to Extended Chip Market Slowdown

/in /tarafından

Texas Instruments (TXN.O) shares dropped 6% on Wednesday after the chipmaker issued a disappointing forecast for the fourth quarter, warning of a prolonged slump in the analog semiconductor market. The bleak outlook has fueled fears that the chip industry’s long-awaited rebound could take longer than expected amid tariff uncertainty and sluggish industrial demand.

TI projected fourth-quarter revenue of $4.4 billion and earnings per share of $1.26, both falling short of analyst expectations. The company’s gross profit margin also slipped by 50 basis points from the previous quarter. Analysts say customers remain cautious about new capital spending, taking a “wait-and-see” approach as global trade and tariff rules remain unclear.

The company’s struggles highlight how geopolitical tensions and U.S. trade policies under President Donald Trump’s administration are weighing on the semiconductor industry. Though TI has reduced some of its exposure to tariffs through trade deals, the potential for new 100% semiconductor import duties has rattled confidence, even as domestic manufacturers are offered exemptions.

Brokerage firm Jefferies said it expects the rest of the Analog group to experience similar softness, while Charter Equity Research noted that weak customer demand and excess inventory could suppress margins for several more quarters.

Shares of other analog chipmakers, including On Semiconductor (ON.O), NXP Semiconductors (NXPI.O), and Analog Devices (ADI.O), also fell between 2% and 3% following the report. At least 16 brokerages cut their price targets for TI after the announcement, with the company poised to lose around $10 billion in market value if declines persist.

Despite a $60 billion investment plan to expand U.S. manufacturing, TI’s near-term outlook remains clouded by macroeconomic uncertainty and weaker industrial spending. Its stock has fallen 4% this year, trading at a 12-month forward P/E ratio of 29.05, above Analog Devices’ 26.24 — a sign investors remain cautious on its valuation amid the slowdown.

Infineon Stock Surges 11% on Strong Guidance and Auto Sector Demand

/in /tarafından

Infineon shares soared 11% after the German semiconductor company raised its full-year revenue outlook and posted quarterly results that exceeded expectations. The positive guidance sets Infineon apart from other chipmakers in the automotive and industrial sectors, many of which have fallen short of forecasts.

At 08:15 GMT, Infineon stock was leading the German blue-chip index (.GDAXI) and was on pace for its best performance since May. Analysts welcomed the news, with Juergen Wagner from Stifel noting that Infineon’s outlook contrasts with the more disappointing results seen across the sector.

Charter Equity Research analyst Jack Egan highlighted that the company’s forecast for flat-to-slightly higher automotive revenue in fiscal year 2025 alleviates concerns about weakening demand in the sector. Additionally, Infineon’s Power & Sensor segment is expected to show significant growth, likely driven by demand for its artificial intelligence (AI) server products.

CEO Jochen Hanebeck acknowledged that demand recovery would be gradual, following an expected reduction in inventory. However, the company remains optimistic about its performance over the fiscal year, which runs through September.

For the second quarter, Infineon projected revenue of €3.6 billion ($3.7 billion), surpassing the company-provided analyst consensus of €3.42 billion.