(Reuters) – Analog chipmaker Texas Instruments forecast third-quarter revenue below Wall Street targets on Tuesday, bogged down by sluggish recovery in consumer and enterprise demand that has kept clients from placing fresh chip orders.
Shares of the Dallas, Texas-based company fell about 2% in trading after the bell.
Texas Instruments said in April it expected overstocked customers to continue expunging excess inventory even in the second quarter, as inflation and rising interest rates eroded spending across sectors such as the industrial segment, its key market, comprising about 40% of its revenue.
Top chipmakers including TSMC and Infineon also flagged how global economic woes have dented broader end-market demand, with the former saying even high demand for artificial intelligence has not been able to offset the widespread weakness.
The company forecast revenue in the current quarter to be in the range of $4.36 billion to $4.74 billion. Analysts polled by Refinitiv expect revenue to come in at $4.60 billion.
Revenue in the quarter ended June 30 was $4.53 billion, compared to estimates of $4.36 billion.
(Reporting by Chavi Mehta in Bengaluru; Editing by Pooja Desai)
