{"id":86983,"date":"2025-07-23T21:57:15","date_gmt":"2025-07-23T21:57:15","guid":{"rendered":"https:\/\/www.europesays.com\/us\/86983\/"},"modified":"2025-07-23T21:57:15","modified_gmt":"2025-07-23T21:57:15","slug":"texas-instruments-plunges-after-forecast-fuels-tariff-fears","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/86983\/","title":{"rendered":"Texas Instruments plunges after forecast fuels tariff fears"},"content":{"rendered":"

Dallas-based Texas Instruments<\/a>, a key chipmaker for producers of cars and factory equipment, tumbled in early trading Wednesday after stoking fears that a tariff-fueled surge in demand will be short-lived.<\/p>\n

Though the company issued a third-quarter forecast that beat most estimates, the outlook was more guarded than some investors had anticipated. The stock fell further during a conference call, when executives struggled to win over analysts who said the company\u2019s tone had become increasingly negative.<\/p>\n

The main concern is whether tariffs and trade disputes <\/a>will hurt a sales resurgence that\u2019s still in the early stages. While revenue jumped 16% last quarter, executives acknowledged that they didn\u2019t know how much of that came from tariff-related \u201cpull in\u201d \u2014 customers making purchases to get out ahead of the levies. <\/p>\n

Related:Dallas-based Texas Instruments touts plans to invest $60 billion in the U.S.<\/a><\/p>\n

Business Briefing<\/p>\n

Become a business insider with the latest news.<\/p>\n

\u201cWe have 100,000 customers,\u201d Chief Financial Officer Rafael Lizardi said in an interview. \u201cWe don\u2019t really know.\u201d<\/p>\n

Revenue will be $4.45 billion to $4.8 billion in the third quarter, the company said. Though the average analyst estimate was $4.57 billion, some projections reached $4.8 billion. Profit in the period will be roughly $1.48 a share, slightly below the average estimate.<\/p>\n

At the midpoint of its forecast, sales will grow 11% this quarter \u2014 a deceleration from the previous period. Still, the chipmaker remains confident that it will eventually top its previous peak of $20 billion in annual revenue, Lizardi said.<\/p>\n

\u201cWe are very confident in our strategy,\u201d he said. \u201cWe think our opportunities are greater than our challenges.\u201d<\/p>\n

During the call, executives said they saw strong orders early in the second quarter, with some customers likely adding inventory to guard against the tariff impact. Since then, levels have returned to what\u2019s expected for a normal recovery period, they said.<\/p>\n

Analysts repeatedly asked management about a perceived shift toward a more pessimistic view of demand. The company expressed confidence that all their markets \u2014 apart from automotive \u2014 are improving.<\/p>\n

\u201cAutomotive has not recovered yet,\u201d Chief Executive Officer Haviv Ilan said. <\/p>\n

China delivered a 32% increase in revenue during the second quarter. That, according to Ilan, \u201cran a little hot,\u201d leading him to be more cautious about the current period.<\/p>\n

Second-quarter sales grew to $4.45 billion, while profit amounted to $1.41 a share. Analysts had estimated revenue of $4.36 billion and earnings of $1.35.<\/p>\n

Texas Instruments leads the market for analog chips, which convert real-world things like sound and pressure into electronic signals. It has the broadest lineup of products and longest customer list in the semiconductor field, making the company\u2019s reports an important indicator of demand across many industries.<\/p>\n

Over the long run, the company expects chip demand to continue growing \u2014 helped by the spread of semiconductors into more products. But the increasing U.S.-China rivalry has overshadowed the industry, and tariffs have raised concerns about higher prices and slower demand.<\/p>\n

Texas Instruments gets about a fifth of its revenue in China, where local chip rivals have been growing. Chinese companies have been investing aggressively in production as part of that country\u2019s push to become less dependent on imports. Texas Instruments has said that the China market \u2014 the world\u2019s largest for semiconductors \u2014 is very competitive.<\/p>\n

The U.S. chipmaker has spent heavily on new production to try to make itself more resilient and give it options in a world with growing trade barriers. The company has four plants outside of the U.S., including one in China. It\u2019s also building new factories near its home base in the Dallas area and in Utah.<\/p>\n

On the downside, that spending on new plants and equipment has cut into cash flow and profitability. The company has promised to switch back to a heavy focus on shareholder returns once that build-out is complete.<\/p>\n

– Ian King for Bloomberg<\/p>\n","protected":false},"excerpt":{"rendered":"Dallas-based Texas Instruments, a key chipmaker for producers of cars and factory equipment, tumbled in early trading Wednesday…\n","protected":false},"author":3,"featured_media":86984,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,69,79,158,53288,67,132,68],"class_list":{"0":"post-86983","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-economy","11":"tag-technology","12":"tag-texas-instruments","13":"tag-united-states","14":"tag-unitedstates","15":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/114904789560788929","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/86983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=86983"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/86983\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/86984"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=86983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=86983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=86983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}