Needham analyst Rajvindra Gill raised his price target on Microchip to $110 and kept his Buy rating after its in-line Q2 earnings and a wide revenue guidance for Q3. The analyst notes that although the tariffs enacted in August led to a miss in expectations for the company's 3 largest end markets - industrial, auto and consumer - October bookings have rebounded with added signs of recovery in China during November. Gill believes that a 2020 recovery is in sight amid a "powerful combination" of restocking and demand growth.

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.