Texas Instruments, Microchip in focus as Evercore favors pair into earnings

Texas Instruments (NASDAQ:TXN) and Microchip Technology (NASDAQ:MCHP) were in focus as investment firm Evercore ISI said it favored the pair over other analog semiconductor suppliers going into earnings season.

“While we view the material underperformance of our analog/MCU complex vs. the SOX since tariff news hit as likely discounting material cuts to 2025 and 2026 estimates, we would prefer to wait until TXN provides its 2Q25 outlook before adding to positions, given it provided the most conservative guidance for 2Q20,” analysts Mark Lipacis and Joseph McCormack wrote in a note to clients.

“We like the group broadly, but favor TXN and MCHP, as we believe inventories of TXN’s chips are the leanest in the supply chain, and MCHP looks most attractive on a Graham-Dodd, 10-yr EPS * 10-yr P/E deep-value framework.”

Evercore has an Outperform rating on both TI and Microchip and its respective price targets are $148 and $39. 

A consensus of analysts expect Texas Instruments to earn $1.10 per share on $3.91B in revenue for the first quarter when it reports after the close on April 23. Analysts expect Microchip to earn $0.10 per share on $960.76M for the coming quarter.