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Analog Semiconductors Stocks Q3 Teardown: Texas Instruments (NASDAQ:TXN) Vs The Rest

StockStory - Mon Jan 22, 2:22AM CST

TXN Cover Image

Let's dig into the relative performance of Texas Instruments (NASDAQ:TXN) and its peers as we unravel the now-completed Q3 analog semiconductors earnings season.

Demand for analog chips is generally linked to the overall level of economic growth, as analog chips serve as the building blocks of most electronic goods and equipment. Unlike digital chip designers, analog chip makers tend to produce the majority of their own chips, as analog chip production does not require expensive leading edge nodes. Less dependent on major secular growth drivers, analog product cycles are much longer, often 5-7 years.

The 15 analog semiconductors stocks we track reported a weak Q3; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 8% below consensus. Inflation (despite slowing) has investors prioritizing near-term cash flows, but analog semiconductors stocks held their ground better than others, with the share prices up 18.5% on average since the previous earnings results.

Texas Instruments (NASDAQ:TXN)

Headquartered in Dallas, Texas since the 1950s, Texas Instruments (NASDAQ:TXN) is the world’s largest producer of analog semiconductors.

Texas Instruments reported revenues of $4.53 billion, down 13.5% year on year, falling short of analyst expectations by 1.2%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Texas Instruments Total Revenue

The stock is up 18.6% since the results and currently trades at $174.25.

Is now the time to buy Texas Instruments? Access our full analysis of the earnings results here, it's free.

Best Q3: Monolithic Power Systems (NASDAQ:MPWR)

Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption.

Monolithic Power Systems reported revenues of $474.9 million, down 4.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with a significant improvement in its inventory levels but a decline in its gross margin.

Monolithic Power Systems Total Revenue

The stock is up 55.9% since the results and currently trades at $629.34.

Is now the time to buy Monolithic Power Systems? Access our full analysis of the earnings results here, it's free.

Weakest Q3: Power Integrations (NASDAQ:POWI)

A leading supplier of parts for electronics such as home appliances, Power Integrations (NASDAQ:POWI) is a semiconductor designer and developer specializing in products used for high-voltage power conversion.

Power Integrations reported revenues of $125.5 million, down 21.7% year on year, falling short of analyst expectations by 3.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Power Integrations had the slowest revenue growth in the group. The stock is up 9.4% since the results and currently trades at $82.25.

Read our full analysis of Power Integrations's results here.

Microchip Technology (NASDAQ:MCHP)

Spun out from General Instrument in 1987, Microchip Technology (NASDAQ: MCHP) is a leading provider of microcontrollers and integrated circuits used mainly in the automotive world, especially in electric vehicles and their charging devices.

Microchip Technology reported revenues of $2.25 billion, up 8.7% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is up 22.2% since the results and currently trades at $89.94.

Read our full, actionable report on Microchip Technology here, it's free.

Universal Display (NASDAQ:OLED)

Serving major consumer electronics manufacturers, Universal Display (NASDAQ:OLED) is a provider of organic light emitting diode (OLED) technologies used in display and lighting applications.

Universal Display reported revenues of $141.1 million, down 12.1% year on year, falling short of analyst expectations by 5.3%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and full-year revenue guidance missing analysts' expectations.

Universal Display had the weakest performance against analyst estimates among its peers. The stock is up 25.3% since the results and currently trades at $178.

Read our full, actionable report on Universal Display here, it's free.

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The author has no position in any of the stocks mentioned

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