Analog Semiconductors Stocks Q4 Teardown: Texas Instruments (NASDAQ:TXN) Vs The Rest

Looking back on analog semiconductors stocks' Q4 earnings, we examine this quarter's best and worst performers, including Texas Instruments (NASDAQ:TXN) and its peers.

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 weaker Q4; on average, revenues were in line with analyst consensus estimates. while next quarter's revenue guidance was 3.6% below consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, though the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the analog semiconductors stocks have fared somewhat better than others, they collectively declined, with share prices falling 3.4% on average since the previous earnings results.

Weakest Q4: 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 $4.08 billion, down 12.7% year on year, falling short of analyst expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

The stock is down 4.7% since the results and currently trades at $166.17.

Read our full report on Texas Instruments here, it's free.

Best Q4: Himax (NASDAQ:HIMX)

Taiwan-based Himax Technologies (NASDAQ:HIMX) is a leading manufacturer of display driver chips and timing controllers used in TVs, laptops, and mobile phones.

Himax reported revenues of $227.7 million, down 13.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with a significant improvement in its inventory levels.

The stock is down 7.9% since the results and currently trades at $5.2.

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

Vishay Intertechnology (NYSE:VSH)

Named after the founder's ancestral village in present-day Lithuania, Vishay Intertechnology (NYSE:VSH) manufactures simple chips and electronic components that are building blocks of virtually all types of electronic devices.

Vishay Intertechnology reported revenues of $785.2 million, down 8.2% year on year, falling short of analyst expectations by 0.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is down 0.7% since the results and currently trades at $21.42.

Read our full analysis of Vishay Intertechnology's results here.

Magnachip (NYSE:MX)

With its technology found in common consumer electronics such as TVs and smartphones, Magnachip Semiconductor (NYSE:MX) is a provider of analog and mixed-signal semiconductors.

Magnachip reported revenues of $50.82 million, down 16.7% year on year, falling short of analyst expectations by 3.1%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Magnachip had the weakest performance against analyst estimates among its peers. The stock is down 24% since the results and currently trades at $5.08.

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

ON Semiconductor (NASDAQ:ON)

Spun out of Motorola in 1999 and built through a series of acquisitions, ON Semiconductor (NASDAQ:ON) is a global provider of analog chips specializing in autos, industrial applications, and power management in cloud data centers.

ON Semiconductor reported revenues of $2.02 billion, down 4.1% year on year, in line with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in its inventory levels.

The stock is down 7% since the results and currently trades at $65.68.

Read our full, actionable report on ON Semiconductor here, it's free.

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