SAN FRANCISCO: Texas Instruments Inc, the biggest maker of analog and embedded processing chips, gave a strong revenue forecast for the current period, lifted by demand from automotive and industrial customers.
Sales will be US$5.8bil to US$6.3bil in the quarter ending in December, the company said in a statement on Wednesday.
Analysts had estimated US$5.73bil on average, according to Bloomberg data.
The outlook bodes well for the broader chip market at a time when fears of an artificial intelligence (AI) bubble have weighed on the sector.
Texas Instruments, which said it saw “broad growth in industrial, automotive and data centre”, has particularly benefited from having a diverse set of customers, not all of which are at the centre of the AI infrastructure build-out.
The shares were little changed in extended trading after closing at US$284.65 in New York. The stock had soared 64% this year through the close.
Profit in the current period will be US$2.45 to US$2.79 per share, according to Texas Instruments.
Wall Street was expecting US$2.26 a share. Third-quarter revenue increased 28% to US$6.06bil, compared with the average analyst estimate of US$5.93bil.
Profit was US$2.62 a share.
The company plans to expand capacity to meet the increase in orders and will likely be at the higher end of its US$2bil to US$3bil budget for spending on new plants and equipment in 2026, according to chief executive officer Haviv Ilan. — Bloomberg
