BofA Securities said in a Thursday note it has increased price targets on five companies in the US semiconductor space.
Given the recent trade deals, fears around the tariffs seem to be dissipating, but industrial/auto demand "signals remain murky," BofA analysts said. After recent earnings, estimates for the top eight vendors in the space showed a 0.6% sales drop for 2025, they noted.
The analysts raised their price target on Analog Devices (ADI) to $260 from $230, saying it is justified by the company's "best-in-class profitability and differentiated/secular communications exposure," which is offset "by near-term concerns around cost inflation and tariffs."
BofA Securities lifted its price target on Texas Instruments (TXN) to $210 from $176, saying they believe the company has "best-in-class" free cash flow generation and returns.
The analysts also increased their price target on Microchip (MCHP) to $65 from $56, NXP Semiconductors (NXPI) to $250 from $215, and ON Semiconductor (ON) to $55 from $46.
Price: 225.93, Change: -0.89, Percent Change: -0.39
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.