BofA Securities said in a Thursday note it has increased price targets on five companies in the US semiconductor space.

Given the recent trade deals, fears around the tariffs seem to be dissipating, but industrial/auto demand "signals remain murky," BofA analysts said. After recent earnings, estimates for the top eight vendors in the space showed a 0.6% sales drop for 2025, they noted.

The analysts raised their price target on Analog Devices (ADI) to $260 from $230, saying it is justified by the company's "best-in-class profitability and differentiated/secular communications exposure," which is offset "by near-term concerns around cost inflation and tariffs."

BofA Securities lifted its price target on Texas Instruments (TXN) to $210 from $176, saying they believe the company has "best-in-class" free cash flow generation and returns.

The analysts also increased their price target on Microchip (MCHP) to $65 from $56, NXP Semiconductors (NXPI) to $250 from $215, and ON Semiconductor (ON) to $55 from $46.

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