What Happened?
Shares of analog chip manufacturer Texas Instruments (NASDAQ:TXN) fell 2.7% in the morning session after China launched two investigations targeting the U.S. semiconductor sector, including an anti-dumping probe that specifically named the company.
The move is part of an escalating trade dispute, coming shortly after the U.S. added more Chinese companies to a trade restriction list. China's Ministry of Commerce initiated the probes, alleging that a surge in U.S. analog chip imports at falling prices has caused “material injury” to its domestic industry. Analog chips, like those made by Texas Instruments, are crucial components for converting real-world signals into digital data in devices ranging from smartphones to electric vehicles. The investigations add another layer of tension to high-level trade talks between U.S. and Chinese officials in Madrid, increasing uncertainty for American semiconductor firms operating in the region.
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What Is The Market Telling Us
Texas Instruments’s shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 4.5% on the news that its Chief Financial Officer cautioned that the recovery in chip demand is not snapping back as strongly as some investors had hoped.
The comments were made during a presentation at Citi's 2025 Global Technology, Media and Telecommunications Conference, where the company noted a gradual recovery across its markets. Management specifically acknowledged challenges within the automotive sector, tempering expectations for a swift rebound. This cautious outlook from a key executive prompted a significant sell-off, with Texas Instruments leading losses among chipmakers in the Nasdaq 100 and weighing on the broader semiconductor industry.
Texas Instruments is down 5.2% since the beginning of the year, and at $177.15 per share, it is trading 19.9% below its 52-week high of $221.25 from July 2025. Investors who bought $1,000 worth of Texas Instruments’s shares 5 years ago would now be looking at an investment worth $1,260.
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