GET DAILY SIGNALSMagnachip Semiconductor (MX) -25% in 30 Days: Earnings Miss Weighs on Shares
Key Takeaways
- MX shares fell roughly 25% over the trailing 30 days, declining from about $3.16 on October 8 to $2.36 at the November 6 close.
- Third-quarter 2026 results, reported November 4, missed expectations, with non-GAAP EPS of -$0.29 versus a -$0.20 consensus and revenue of $44.0 million versus roughly $47.5 million expected.
- Gross margin dropped to 14.0%, below the company's 17%–19% guidance range, pressured by the Korean won's sharpest quarterly appreciation against the U.S. dollar since late 1998.
- Fourth-quarter guidance signals continued pressure, calling for revenue of $41–45 million and gross margin of 10%–12% amid a planned Gumi fab substation shutdown.
- Over the trailing quarter, MX has declined roughly 40%, extending a longer slide from its 52-week high and leaving shares near their 52-week low.
- Management is pursuing a product-transformation strategy under new CEO Chae Lee and a silicon-carbide partnership with Navitas Semiconductor (NVTS).
- For deeper detail on MX, explore its Price Targets, Earnings, and Forecast pages.
- Explore Trending AI Robots to see how automated trading strategies are approaching opportunities like MX.
Magnachip Semiconductor (MX) at a Glance
Magnachip Semiconductor Corporation (MX) designs and manufactures analog and mixed-signal semiconductor solutions from its base in South Korea. The company has about 45 years of history and reports through two main segments: Power Analog Solutions and Power IC. Its offerings include power discrete devices like MOSFETs and IGBTs, along with integrated circuits such as AC-DC and DC-DC converters, LED drivers, regulators, PMICs, and level shifters.
These products serve industrial, automotive, communication, consumer, and computing markets. Manufacturing takes place at facilities in Cheongju and Gumi. I follow the stock for its ties to power-management demand in AI servers, data centers, electric vehicles, and industrial electrification, as well as its shift from a second-source supplier toward more differentiated offerings.
Recent Stock Price Moves: 30 Days and the Quarter
Over the past 30 days, MX declined about 25%, moving from a close near $3.16 on October 8 to $2.36 on November 6. The drop was fairly steady through October but picked up speed in early November, with shares reaching an intraday low of $1.92 on November 5 after the earnings release.
The three-month view shows a steeper fall. From a level around $3.98 in early August, the stock has lost roughly 40%. This has brought shares close to their 52-week low after starting the period in the mid-$3 range.
Drivers Behind the 30-Day Decline
The third-quarter 2026 earnings report on November 4 was the main trigger. Revenue came in at $44.0 million, inside the company’s guidance but below the roughly $47.5 million consensus. That figure was down 4.3% year over year and 1.6% sequentially. Adjusted EPS of -$0.29 also missed the -$0.20 estimate.
Gross margin was the biggest negative surprise, falling to 14.0% from 19.3% in the prior quarter and below the 17%–19% target range. Management pointed to a sharp appreciation of the Korean won versus the U.S. dollar—the largest quarterly gain since late 1998—as the primary factor. With many costs in won and revenue mostly in dollars, the move squeezed margins. Lower volumes in some consumer areas and temporary packaging limits added pressure.
Fourth-quarter guidance reinforced the caution, with revenue expected between $41 million and $45 million and gross margin of 10%–12%. Seasonal weakness, the planned Gumi fab substation shutdown, and ongoing currency strength were cited. The miss combined with the weak outlook fueled the sell-off.
Broader Pressures Over the Past Quarter
The three-month slide reflects ongoing structural and cyclical challenges. Revenue has declined for three straight quarters, and gross margins remain well below historical norms due to foreign-exchange effects and pricing pressure in consumer applications. The transition under CEO Chae Lee, who started July 1, 2026, has not yet produced better results. I checked this using Tickeron’s AI Screener to compare the stock with peers in the sector.
Management has still advanced its pipeline, introducing 57 new-generation products year to date with a goal of about 85 by year-end. A partnership with Navitas Semiconductor (NVTS), including a $5 million equity investment in September, aims to blend silicon-carbide technology with Magnachip’s silicon capabilities. Analyst views have stayed mostly constructive, including Benchmark’s Overweight rating in mid-October. Near-term results, however, have overshadowed the longer-term story.
What to Watch Going Forward
Key items ahead include movements in the Korean won against the dollar and the company’s progress in lifting gross margins after the expected fourth-quarter low point. Completion of the Gumi fab upgrade and any easing of packaging constraints will matter, as will the pace of new product introductions and updates on the Navitas partnership. Broader demand trends in AI servers, industrial, and automotive markets, plus any shifts in analyst estimates, should influence sentiment.
Using AI Tools in My Research
I also reviewed Trending AI Robots to see how automated strategies are positioned around names like MX. These bots draw from a large platform of AI-driven trading approaches and highlight top-performing options across different timeframes and styles. Checking this data adds a systematic layer to my fundamental and technical review.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
MX's RSI Indicator ascends from oversold territory
The RSI Indicator for MX moved out of oversold territory on November 06, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 41 similar instances when the indicator left oversold territory. In 31 of the 41 cases the stock moved higher. This puts the odds of a move higher at 76%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 48 of 64 cases where MX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 75%.
Following a +4.56% 3-day Advance, the price is estimated to grow further. Considering data from situations where MX advanced for three days, in 155 of 235 cases, the price rose further within the following month. The odds of a continued upward trend are 66%.
MX may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on MX as a result. In 58 of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 71%.
The Moving Average Convergence Divergence Histogram (MACD) for MX turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 50 similar instances when the indicator turned negative. In 37 of the 50 cases the stock turned lower in the days that followed. This puts the odds of success at 74%.
MX moved below its 50-day moving average on October 07, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for MX crossed bearishly below the 50-day moving average on October 14, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 86%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MX declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 78%.
The Aroon Indicator for MX entered a downward trend on November 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 13 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 44 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.380) is normal, around the industry mean (5.436). P/E Ratio (-2.776) is within average values for comparable stocks, (16.192). Projected Growth (PEG Ratio) (1.127) is also within normal values, averaging (3.803). Dividend Yield (0.000) settles around the average of (0.014) among similar stocks. P/S Ratio (0.567) is also within normal values, averaging (46.468).
The Tickeron Price Growth Rating for this company is 88 (best 1 - 100 worst), indicating slightly worse than average price growth. MX’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. MX’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock worse than average.
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General Information
a developer of mixed signal & digital multimedia semiconductors
Industry Semiconductors
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