NEW YORK (AP) -- Shares of Texas Instruments slipped Wednesday and Oppenheimer & Co. cut its rating as the chipmaker shifts the focus of its wireless investments from smartphones and tablets to industrial and automotive customers
THE SPARK: Oppenheimer 's Rick Schafer lowered Texas Instruments to "Perform" from "Outperform" and removed its $35 price target.
THE ANALYSIS: Texas Instruments and other chipmakers have struggled as companies like Apple Inc. begin making their own chips for their smartphones.
While Texas Instruments said Tuesday that it will start to move its wireless investments away from the smartphone and tablet market, Schafer believes that it might take years for the company to see material revenue from its efforts.
SHARE ACTION: Shares of Texas Instruments Inc. dropped 60 cents, or 2.2 percent, to $27.23 in midday trading. The stock has traded between $26.06 and $34.24 over the past year. For the year to date, the shares are off 6 percent.