Not Just NVDA: 3 Semiconductor Stocks Struggling This Quarter

Key Points

• NVDA shares have traded flat last month as the AI rally took a well-earned break.
• The semiconductor industry has reaped tremendous profits from AI hyperscalers, but not every company in the sector is posting big numbers.
• Texas Instruments, Marvell Technology, and ON Semiconductor have struggled in 2025, and their outlook points to more turbulence ahead.

Semiconductor super stocks like NVIDIA Corp. NASDAQ: NVDA have been some of the market's biggest winners over the last few years. Still, even rallies supported by strong fundamentals need an occasional breather. While the stock is still up 32% this year, it's traded flat for over a month as the AI rally hit a roadblock.

NVDA has beaten the bears once this year already, but a few other semiconductor stocks haven't been so lucky. Here are three chip companies struggling in 2025 despite broad sector tailwinds, and an assessment of their prospects as 2026 approaches.

Texas Instruments: Tariff Worries Override Upbeat Earnings Reports

Tariff troubles were at the forefront of TXN investors' thoughts throughout the year, causing the stock to lag the semiconductor industry despite positive earnings reports in Q1 and Q2. Unlike many of the most prominent semiconductor stocks, Texas Instruments Inc. NASDAQ: TXN only derives a small portion of its revenue from AI hyperscalers and data centers.

The company focuses more on analog chips used in consumer-facing sectors like autos and industrials. The industrial and automotive sectors have been very susceptible to tariff pressures, especially car manufacturers with intertwined supply chains like Ford and General Motors.

Even top and bottom-line earnings beats in Q1 and Q2 this year haven't fueled a rally; in fact, the stock is down nearly 10% in the last three months. One reason for pessimism despite earnings growth is tariff front-loading.

Many TXN customers in the auto and industrial sectors stockpiled chips in the first half of the year, boosting sales but in a somewhat artificial manner. Executives painted a cautious picture during both conference calls so far this year, hinting that tariffs continue to impact the company's bottom line. CEO Haviv Ilan announced that Q3 sales guidance is between $4.45 billion and $4.8 billion, projection analysts consider tepid.

Due to this focus, broad tailwinds in the semiconductor industry haven't reached TXN's sails. As long as U.S.-China trade relations remain tense, the company's outlook will be subject to geopolitical caveats.

Interestingly enough, any slowdown in AI capex spending could become a tailwind for TXN since its business model isn't reliant on sales to hyperscalers.

Marvell Technology: Poor Guidance Spooks Investors

Unlike Texas Instruments, Marvell Technology Group Ltd. NASDAQ: MRVL is knee-deep in the AI data center space, providing custom chips for many of the sector's most prominent players. It recently divested its underperforming automotive division to focus more on data center buildouts, and its revenue increased to a record $2.01 billion in Q2, representing a 57% year-over-year increase.

Naturally, the stock is down nearly 40% YTD, including a 13% decline in the last month alone. What's causing consternation amongst investors? Poor guidance and a hefty valuation.

Marvell released its fiscal Q2 2026 earnings report after the close of the market on August 28, delivering EPS right at the expected 67 cents per share. However, revenue missed analysts' projections by $3 million, and executives tempered expectations during the conference call.

CEO Matt Murphy projected another revenue record near $2.06 billion in fiscal Q3 2026, representing 36% YOY growth. However, Murphy warned that data center revenue (representing 70% of the company's sales) would be flat sequentially in Q3, a statement that spooked investors expecting another ambitious target.

Shares dropped 18% following the earnings report, and nine different analysts lowered their price targets on the stock.

Many analysts now see Marvell falling behind its heavyweight competitors like NVIDIA and Broadcom Inc. NASDAQ: AVGO, and its valuation is significantly elevated at 73 times forward earnings.

Despite these near-term headwinds, MRVL shares are still a consensus Buy based on 33 Wall Street research analysts, with an average price target of $90.50, more than 30% above the current market price. Considering how AI capex continues to grow exponentially, Marvell's current weakness could be a buying opportunity.

ON Semiconductor: Margins Under Pressure from Automotive Slump

ON Semiconductor Corp. NASDAQ: ON faces a dilemma similar to Texas Instruments. While the company sells chips to various automotive, mobile, and consumer electronics industries, it's not drawing as heavily from the AI fountain as companies like Marvell.

Diversification is never bad, but ON isn't drinking from the AI fountain as heavily as its more profitable industry peers. Additionally, its margins are compressing due to shaky performance in the automotive division, and the stock is down more than 20% YTD. A closer look at earnings news reveals the reasons behind the decline.

ON Semiconductor released Q2 2025 earnings before the market opened on August 4, and the crowd didn't exactly go wild over the data. Revenue of $1.47 billion was enough to surpass expectations, but EPS numbers slightly missed, and YOY sales declined by more than 15%.

The company's analog chips need a booming electric vehicle market to drive growth. Still, macro headwinds (like the end of the EV tax credit) and inventory gluts are forcing executives to be cautious with guidance. Automotive revenue for the quarter was $733 million, a 4% decline from Q1.

The Q2 report also highlighted a 240 basis point decline in gross margin from the previous quarter, with operating margin dropping 90 bps to 17.3%. While Q3 guidance aligned with expectations, analyst reaction was mixed, and the stock is still a consensus Hold based on 26 ratings. Until the automotive industry shows consistent growth, ON shares will struggle to find their footing.