Piper Jaffray analyst Harsh Kumar believes the United States and China will come together to sign a trade deal within the February timeframe. Microchip (MCHP), Cypress Semiconductor (CY) and ON Semiconductor (ON) are the three Semiconductor companies that should benefit the most from a trade resolution, Kumar tells investors in a research note titled "How To Play A Trade Deal: MCHP, CY, and ON." Under a deal, the analyst expects the uncertainty in the Chinese distribution channel to be removed, and the "true end-market demand to be restored," especially in the Chinese industrial and consumer markets.

BofA raised the firm's price target on Texas Instruments (TXN) to $190 from $175 and keeps a Neutral rating on the shares. TI's small Q1 beat and inline but sequentially rising Q2 sales guidance, "while modest, potentially marks a recovery inflection in industrial chip demand," with positive read-across for U.S. peers such as Analog Devices (ADI), Microchip (MCHP), NXP Semiconductors (NXPI) and On Semiconductor (ON), the analyst tells investors. However, despite an expected recovery, TI's sustained high capex intensity could keep reported calendar year 2024-26 pro-forma EPS below $6 per share, the analyst added.