Texas Instruments forecasts second-quarter revenue above estimates, abating tariff concerns
By Arsheeya Bajwa
Texas Instruments
forecast second-quarter revenue above Wall Street estimates on Wednesday, betting on robust demand for its analog chips despite widespread economic uncertainty stemming from U.S. tariffs.
The optimistic outlook from TI- the first among major U.S. chipmakers to report results for the March quarter - could help allay some of the concerns over the adverse impact of tariffs on semiconductor companies.
Shares of the company rose more than 6% in extended trading after dropping more than 17% this year as investor anxiety stemming from a worsening macroeconomic outlook weighed on the sector.
The company's strong quarterly forecast is being driven by "cyclical demand recovery and possibly some tariff pull-ins," said Kinngai Chan, a senior analyst at Summit Insights Group.
All of TI's markets grew sequentially with the exception of a seasonal decline in personal electronics, the company said in a statement.
TI's results signal a gradual rebalancing of supply and demand in the analog semiconductor market, as the company works to clear surplus inventory that resulted from customers over-purchasing during the pandemic.
The company expects revenue in the range of $4.17 billion to $4.53 billion for the second quarter, compared with analysts' average estimate of $4.10 billion, according to data compiled by LSEG.
It might still be too early to ascertain the impact of increased levies and escalating Sino-U.S. trade tensions on the company and the broader chip industry due to pending tariff negotiations, said Stifel analyst Tore Svanberg.
"There does not seem to be much of an impact (from tariffs) for now."
TI expects earnings between $1.21 per share and $1.47 per share for the second quarter, compared with analysts' average estimate of profit of $1.23 per share.
Revenue in the first quarter rose 11% to $4.07 billion, beating estimates of $3.91 billion and snapping a nine-quarter streak of sales declines.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
an hour ago
- The Hindu
Iran says sixth round of U.S. talks planned for June 15
Iran's Foreign Ministry has announced that a new round of nuclear talks with the United States is scheduled for Sunday (June 15, 2025), following President Donald Trump's earlier announcement that it was expected to take place on Thursday. 'The next round of Iran-U.S. indirect talks is being planned for next Sunday in Muscat,' foreign ministry spokesman Esmaeil Baqaei said in a statement Tuesday (June 10, 2025), adding foreign minister and chief negotiator Abbas Araghchi would this week attend the Norway's Oslo Forum, a gathering of conflict mediators. Iran and the United States have held five rounds of talks since April to thrash out a new nuclear deal to replace the 2015 accord with major powers that Trump abandoned during his first term in 2018. On May 31, after the fifth round of talks, Iran said it had received 'elements' of a U.S. proposal for a nuclear deal, with Mr. Araghchi later saying the text contained 'ambiguities'. 'Lacking elements' Iran said on Monday the U.S. proposal was 'lacking elements' reflective of the previous negotiations and that it would present a 'reasonable, logical and balanced' counter-proposal to the United States through mediator Oman. Mr. Trump has said new U.S.-Iran talks this week could clarify if a nuclear deal is possible to avoid military action. He added that the latest meeting with Iran was expected Thursday, although a source familiar with preparations said it would more likely be on Friday or Saturday. Diplomatic standoff Iran and the United States have recently been locked in a diplomatic standoff over Iran's uranium enrichment, with Tehran defending it as a 'non-negotiable' right and Washington calling it as a 'red line'. Iran currently enriches uranium to 60%, far above the 3.67% limit set in the 2015 deal and close, though still short of the 90% needed for a nuclear warhead. Western countries, including the United States, have long accused Iran of seeking to acquire atomic weapons, while Tehran insists its nuclear programme is for peaceful purposes.
Mint
2 hours ago
- Mint
MORNING BID EUROPE-Investors itching for progress in US-China talks
A look at the day ahead in European and global markets from Johann M Cherian With precious little to report out of Sino-U.S. trade talks in London, investors are ready to pounce on almost any sign a thaw in the frigid relationship between the two superpowers is just around the corner. Stocks in Asia are creeping higher, as are U.S. and European equity futures, while the dollar was also a tad firmer after President Donald Trump said he was getting "good reports" from Monday's meeting with China. Talks resume at 0900 GMT on Tuesday at Lancaster House and markets want a deal to flesh out details around U.S. tech export controls and those around Chinese rare earths, and of course, where the final average rate of tariffs will settle. Recent data indicates the trade war is taking a toll on both major economies, which could soon rattle other major economies. Global investors are also in the market for fresh trade deals, with about a month left before Trump's tariff pause expires. Also expected out of the UK will be an employment report with investors and the Bank of England keen on how pay growth - a reflection of broader price pressures - fared in April. Signs of cooling wage growth could be a relief for BoE policymakers who are currently divided on the approach to further monetary policy easing. Meanwhile, the global healthcare sector was caught in the crossfire as vaccine sceptic U.S. Health Secretary Robert F. Kennedy Jr. fired all members of a U.S. Centers for Disease Control and Prevention panel of vaccine experts. The move could be a headache for companies such as GSK , Sanofi, AstraZeneca, Moderna and BioNTech as they face longer waits for vaccine approvals. Advertising firms weren't spared from scrutiny either as the Wall Street Journal reported that the U.S. Federal Trade Commission has sought information from some of the industry's leading firms. Omnicom, WPP, Dentsu, Interpublic Group and Publicis Groupe were among those asked by the watchdog on whether advertising and advocacy groups violated antitrust laws by coordinating boycotts of certain sites. Key developments that could influence markets on Tuesday: - UK May BRC retail sales - UK April employment data - U.S. 3-year Treasury note auction - Reserve Bank of Australia Governance Board meeting Trying to keep up with the latest tariff news? Our new daily news digest offers a rundown of the top market-moving headlines impacting global trade. Sign up for Tariff Watch here. This article was generated from an automated news agency feed without modifications to text.
Time of India
5 hours ago
- Time of India
US and China are holding trade talks in London after Trump's phone call with Xi
Top officials from America and China convened in London. They aimed to strengthen a shaky agreement in their trade conflict. The meeting, led by He Lifeng and Howard Lutnick, follows earlier discussions in Geneva. Both sides seek to resolve disagreements over semiconductors and rare earth minerals. A phone call between Donald Trump and Xi Jinping preceded the talks. Chinese Vice Premier He Lifeng, right, with U.S. Treasury Secretary Scott Bessent before their meeting to discuss China-U.S. trade, in London, Monday, June 9, 2025. (Li Ying/Xinhua via AP) Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads High-level delegations from the United States and China met in London on Monday to try and shore up a fragile truce in a trade dispute that has roiled the global economy.A Chinese delegation led by Vice Premier He Lifeng held talks with US Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer at Lancaster House, an ornate 200-year-old mansion near Buckingham Wentao, China's commerce minister, also was part of Beijing's talks, which may continue on Tuesday, follow negotiations in Geneva last month that brought a temporary respite in the trade two countries announced on May 12 they had agreed to a 90-day suspension of most of the 100 per cent-plus tariffs they had imposed on each other in an escalating trade war that had sparked fears of US and China are the world's biggest and second-biggest economies. Chinese trade data shows that exports to the United States fell 35 per cent in May from a year the Geneva talks, the US and China have exchanged angry words over advanced semiconductors that power artificial intelligence, visas for Chinese students at American universities and "rare earth" minerals that are vital to car makers and other Donald Trump spoke at length with Chinese leader Xi Jinping by phone last Thursday in an attempt to put relations back on track. Trump announced on social media the following day that the trade talks would resume in earths were expected to be a focus of the talks. The Chinese government started requiring producers to obtain a licence to export seven rare earth elements in April. Resulting shortages sent automakers worldwide into a tizzy. As stockpiles ran down, some worried they would have to halt indicated Saturday that it is addressing the concerns, which have come from European companies as well as US Hassett, a US economic adviser, told CNBC on Monday that he expected a short meeting with "a big, strong handshake" on rare UK government says it is providing the venue and logistics but is not involved in the talks, though British Treasury chief Rachel Reeves met with both Bessent and He on Sunday, and UK Business Secretary Jonathan Reynolds was due to meet Wang."We are a nation that champions free trade and have always been clear that a trade war is in nobody's interests, so we welcome these talks," the British government said in a statement.
