Image Source: Unsplash

Introduction

Texas Instruments (TXN), Microchip Technology (MCHP), and STMicroelectronics (STM), all constituents in our Integrated Device (semiconductor) Manufacturers Portfolio crashed 10.9%, on average, yesterday due to a multitude of factors which are outlined below.

What are Integrated Device Manufacturers?

 Integrated Device Manufacturers (IDMs) are semiconductor companies that design, manufacture, and sell their own chips all under one roof. Unlike fabless firms that outsource production, IDMs own and operate their fabrication facilities (fabs), giving them full control over the entire chip-making process.

Our Integrated Semiconductor Manufacturers Portfolio Constituent Performances Yesterday

The 8 largest !DMs are included in our Integrated Semiconductor Manufacturers Portfolio and are listed below as to their stock performances yesterday (July 23rd), in ascending order, along with their market capitalizations and the reason(s) for the extent of their price changes, where significant:

1. Texas Instruments (TXN) DOWN 13.3% July 23rd
   • Market Capitalization: $169B
   • Reason(s) For Price Change:
     • Q3 Guidance Disappointed; Management noted that some customers may have pulled orders forward due to tariff fears and this resulted in weaker-than-expected guidance for the third quarter that spooked investors who had priced in a more robust recovery
2. Microchip Technology (MCHP): DOWN 6.7% July 23rd
   • Market Capitalization: $38B
   • Reason(s) For Price Change:
     • Sympathy Sell-off: As a peer of TXN in analog and embedded chips, Microchip was swept up in the broader market reaction—even though its own fundamentals remained solid
3. STMicroelectronics (STM): DOWN 4.9% July 23rd
   • Market Capitalization: $28B
   • Reason(s) For Price Change:
     • Unexpected Q2 Loss: STM posted an adjusted operating loss of $133 million, versus analyst expectations of a $54 million profit

Texas Instruments' projected Q3 earnings below consensus raised red flags about demand in analog chips and, as a result the following constituents in the Portfolio got caught in the downdraft:

1. Analog Devices (ADI): DOWN 3.1% July 23rd
   • Market Capitalization: $113B
2. Infineon Technologies (IFNNY): DOWN 2.1% July 23rd
   • Market Capitalization: $55B
3. NXP Semiconductors (NXPI); DOWN 1.4% July 23rd
   • Market Capitalization: $57B

2 constituents bucked the trend yesterday advancing slightly, namely:​​​​​

1. Micron Technology (MU): UP 0.6% July 23rd
   • Market Capitalization: $123B
   • Reason(s) For Change:
     • Space-qualified Product Launch: On July 22nd, Micron unveiled radiation-tolerant NAND for aerospace missions, expanding its footprint in high-margin, mission-critical markets
2. Intel Corp. (INTC): UP 1.1% July 23rd
   • Market Capitalization: $102B
   • Reason)s) For Change: 
     • Anticipation of Q2 Results: With earnings scheduled for July 24th, investors were positioning for a potential upside surprise as a result of Intel’s restructuring and cost-cutting efforts which raised hopes for margin improvement

Summary

The Portfolio was DOWN 4.8% yesterday and is now DOWN 3.5% MTD.

More By This Author:

3 Of The 5 Stocks In Our AI-Focused Drug Discovery Portfolio Were Up Significantly Last Week - Here's Why
Cloud SaaS Computing Stock, MongoDB, Jumped 9% Last Week
Micron Technology Stock Collapsed Week-Ending July 18th: Here's Why