Industry News

Semiconductor industry sees downturn Citi cuts earnings estimates for NXPI (US) and other companies　

Update time : 2022-10-17 09:55:34

Citi recently issued a research note lowering its 2022 and 2023 earnings estimates for NXP (NXPI.US), Texas Instruments (TXN.US) and Microchip Technology (MCHP.US), with Citi noting that orders for these companies are being cancelled.
Citi analyst Atif Malik said weak demand, especially in Europe, combined with high inventories, led to the decline of ADENO (ADI.US) in July, and now other companies are starting to suffer as well.
Malik said, "We expect both NXP and Texas Instruments to report weak order results, and we reiterate our view that this is just the beginning of the downturn, which will be felt by every company/every end market." Malik added that Microchip will likely continue to feel the weakness as it has the longest lead times.
Malik added that ADN remains a top pick for the company due to its "defensive nature" but warned that the Philadelphia Semiconductor Index could continue to hit new lows "as the downturn gains momentum and forecasts are revised down."
Malik revised his 2022 earnings estimates for Microchip, raising the company's earnings per share for this year to $5.50 from $5.43 previously. However, Citi expects Microchip to earn US$4.06 per share next year, down from its previous estimate of US$5.51.
Malik now expects NXP to earn $9.49 per share in 2023, down from a previous estimate of $12.48. Malik expects Texas Instruments to earn $7.72 per share in 2023, up slightly from a previous estimate of $7.70.
Analysts also expect two of the semiconductor industry's strongest sectors - automotive and data centres - to take a hit next, with cancellations in these markets within "1-2 quarters".
Malik added that there are three signs pointing to a possible bottom in the first half of 2023, including falling expectations, capital expenditure cuts and "near-trough valuations".

WLS Electronics was established in 2005. It is a global well-known brand electronic component distributor with rich industry experience and many types of warehouse products. Welcome to contact us to check the inventory of electronic components

Previous : Smith Focuses on Strengthening Connectivity and Enabling Smart Distribution in Asia Pacific

Next : TDK Introduces Rugged Capacitors with Low Self-Inductance and High Design Flexibility

How many chips does a car need?

Sep .19.2024

Automotive chips can be divided into four types according to their functions: control (MCU and AI chips), power, sensors, and others (such as memory). The market is monopolized by international giants. The automotive chips people often talk about refer to

Position and Function of Main Automotive Sensors

Sep .18.2024

The function of the air flow sensor is to convert the amount of air inhaled into the engine into an electrical signal and provide it to the electronic control unit (ECU). It is the main basis for determining the basic fuel injection volume. Vane type: The

Chip: The increasingly intelligent electronic brain

Sep .14.2024

In this era of rapid technological development, we often marvel at how mobile phones can run various application software smoothly, how online classes can be free of lag and achieve zero latency, and how the functions of electronic devices are becoming mo

LDA100 Optocoupler: Outstanding Performance, Wide Applications

Sep .13.2024

In terms of characteristics, LDA100 is outstanding. It offers AC and DC input versions for optional selection, enabling it to work stably in different power supply environments. The small 6-pin DIP package not only saves space but also facilitates install

About Us

About Us What we do Quality People

Products

CHIP/IC Active devices Passive device Components OTHER

China electronic components supplier----Wah Luen Shing Electronic.----www.wlschip.com

Leave a message