BMO Capital analyst Ambrish Srivastava initiated Microchip with an Outperform rating and a price target of $92. The analyst says that while it may difficult to gauge the "duration and depth of the current downturn" in the semi industry beyond the typical "2 quarters", he is positive on the stock because it has already had "two rounds of downward estimate revisions", bringing its valuation below its 5-year median. Srivastava is also positive on MicroChip's position "among the higher rungs of diversified businesses" in his coverage.

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.