Boston, MA 10/13/2014 (wallstreetpr) – Texas Instruments Incorporated (NASDAQ:TXN) witnessed a massive slump in its stock price, as it plummeted by $3.28/share. This resulted from looming fears that have percolated deep into the investors’ mindset; all and sundry are of the opinion that the semiconductor company is heading towards the last quarter, wherein weaker returns are expected.
Investors Worried
Investors are worried and thus reacting to the warnings by the premier chipmakers about slumping markets across Europe and China. NASDAQ was marred by a slump of 2.3%, declining by 0.7 units, as all the semiconductor companies witnessed pitfalls in their stock values.
Quarterly Reports Likely Soon
Texas Instruments Incorporated (NASDAQ:TXN) plans to come up with Q3 reports later this month. The company expects to garner net revenues that looms between $3.31 to $3.59 billion. Each investor is slated to obtain profits in the range of 66 to 76 cents. The CFO, Kevin March had stated in an interview earlier that the company shall witness bolstering growth in the automation and control segments. This clearly projects that TXN has strategic plans to reinvest, obtain profits and multiply its returns.
Reasons For Concern
However, the other key players of the semiconductor industry have concerns on the rate of feasible returns. Microchip Technology Inc. (NASDAQ:MCHP) slumped by 12.26%, after financial officers conjectured that a sumptuous slump in the financial growth is evident and imminent in the upcoming quarter.
Such plunges followed owing to the dreary incidences of overseas market troughs and looming anxieties over plausible growth. China has received setbacks in overall demands. Since the global semiconductor industry is dependent to an extent on China’s performance, the key semiconductor players came up with figures that effuse lower profit returns.
Volatile activity is also evident amongst other semiconductor companies. However, Intel Corporation (NASDAQ:INTC) emerged as an industry bellwether. It is ought to report its net trade earnings, which is 2.6 times of its usual volume.
Joanne Feeney, an analyst at ABR Investment Strategy, reported that TXN’s guidance may fall below the expectations, and this might propel Texas Instruments Incorporated (NASDAQ:TXN) to come up with weaker quarterly guidance. Indeed, an investor should be careful and should restrain, if the investment planned is over a shorter period of time.
