Texas Instruments third-quarter profit forecast disappoints; shares fall
TI's latest outlook adds to concerns over the impact of U.S. President Donald Trump's trade policy on semiconductor companies.
The company expects quarterly earnings between $1.36 per share and $1.60 per share, the midpoint of which was below the estimates of $1.49 per share, according to data compiled by LSEG.
TI has made big investments to expand its capacity for cost-effective 300-millimeter wafer manufacturing technology.
It also plans to spend more than $60 billion to expand its U.S. manufacturing footprint, as it ramps up domestic production amid pressure from the Trump administration to localize the semiconductor supply chain.
TI's capital expenditures in the June quarter stood at $1.31 billion, up more than 22 per cent from the year-ago period.
The company is the first among major U.S. chipmakers to report earnings for the June quarter, making its results closely watched. It is also hailed as a demand indicator for various industries, given the widespread use of its chips.
It expects revenue in the range of $4.45 billion to $4.80 billion for the third quarter, compared with analysts' average estimate of $4.59 billion.
It reported sales of $4.45 billion for the second quarter, beating estimates of $4.36 billion.
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