Texas Instruments and STMicroelectronics reported solid earnings, yet both faced sell-offs due to overly high market expectations, highlighting valuation pressures in the analog chip sector. STMicroelectronics’ third-quarter guidance fell short of forecasts, sending its stock plunging as much as 17%; meanwhile, although Texas Instruments posted better-than-expected results, its comments on capital expenditures weighed on its cash-flow outlook. The long-term tailwinds from AI demand can no longer offset the short-term challenges of managing expectations, and industry risks are shifting from fundamentals to a battle over the pace of growth.