Texas Instruments Warns of Slump in Chip Demand, Shares Slide

By
Bill McColl
Bill McColl
Full Bio

Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

Learn about our editorial policies
Published July 26, 2023
Texas Instruments

Getty Images

Key Takeaways

  • Texas Instruments' guidance for current quarter profit and sales was lower than analysts expected.
  • The semiconductor maker warned demand weakness would impact current quarter results.
  • Shares fell even as second quarter earnings and revenue exceeded estimates.

Texas Instruments (TXN), commonly known as TI, shares slumped 5.4% on Wednesday after the semiconductor maker warned sluggish demand would impact its current quarter results.

The company predicted third-quarter sales of $4.36 billion to $4.74 billion, the midpoint below analysts’ forecasts of $4.59 billion. It expects earnings per share (EPS) in a range of $1.68 to $1.92, while analysts’ had been anticipating $1.91. 

TI noted that orders for new chips declined outside the car industry. CEO Haviv Ilan said that, as in the first quarter, the company “experienced weakness across our end markets with the exception of automotive.”

In the second quarter, TI reported EPS of $1.87. Revenue fell 13% to $4.53 billion. Both were better than expected. 

Despite losing ground on Wednesday, shares of Texas Instruments remained higher for 2023.

TXN YTD

YCharts
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Texas Instruments. “TI reports second quarter 2023 financial results and shareholder returns.”

Compare Accounts
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Provider
Name
Description