[UBS: Analog Chip Inventory Down 10%, Cycle Continues Upward, Texas Instruments as Top Pick] DeepTech TechFlow reports, according to Trend Research, UBS Group's research report dated October 16, 2026, indicates that third-quarter analog chip distributor inventories declined by 7% to 10% quarter-on-quarter, with power analog down 10%, precision analog down 7%, and microcontrollers down 5%. Prices increased by 9% to 12% quarter-on-quarter. Near-term net demand expectations are +79%. 70% of distributors and 76% of direct buyers are concerned about supply shortages over the next six months. Texas Instruments (TXN) third-quarter revenue is expected to grow 10.7% quarter-on-quarter, exceeding the seasonal average of 6.1%. UBS concludes that strong demand, tightening supply, rising prices, and low distributor inventories suggest further upside potential in the analog chip cycle. TXN's finished goods inventory stands at 75 days, higher than the industry average of 39 days. Its inventory position, market share recovery potential, and free cash flow inflection point make it the top pick. Analog Devices (ADI) third-quarter revenue is expected to grow 8.5% quarter-on-quarter, exceeding the seasonal average of 4.6%, with similarly favorable earnings expectations.