NEW YORK (CNN/MONEY) - Merrill Lynch's downgrade of the semiconductor stocks on Monday and analysts' worries about Intel's second-quarter earnings report scheduled for Tuesday after the close, have pushed down the share prices of many top stocks in the group.

Texas Instruments, one of the stars in the sector, on Monday tested its 10-month low. All told, the stock has given back more than half its gains since its rebound began in January 2003.

It now appears that the pullback for TI has been too large. Although the stock may still face near-term downward pressure, Texas Instruments looks like a bargain based on its long-term potential.

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