1326 GMT - European semiconductor companies exposed to auto and industrial markets have seen a decline in their inventories, JPM Global Equity Research's Sandeep Deshpande writes in a note. Inventory days--which measure the average number of days it takes to sell off the company's inventory--at auto-industrial-exposed chipmakers fell to 166 in third quarter from 179 in second quarter, but remain 46 days above the roughly 120-day that many companies see as the "new normal", he says. Third-quarter results also show the impact of elevated inventories, with several companies missing margin guidance, he adds. The analyst expects inventory and margin normalization only by late 2026, and says oversupply has created a buyer's market with shorter lead times. "Inventories at auto parts suppliers are still elevated and industrial customer inventories are also high," he says. JPM favors ASML Holding over auto-industrial exposed Infineon and STMicroelectronics, whose recoveries depend on solid market demand. ASML, Infineon and STMicroelectronics shares are down 0.7%, 3% and 2.5%, respectively. (najat.kantouar@wsj.com)

(END) Dow Jones Newswires

November 18, 2025 08:44 ET (13:44 GMT)

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