Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Texas Instruments Falls On Fear Demand For Chips Is Peaking

Stock MarketsJul 22, 2021 05:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Dhirendra Tripathi – Texas Instruments (NASDAQ:TXN) stock slipped more than 4% in Thursday’s premarket trading amid concerns that demand for silicon chips is peaking.

The company said on Wednesday it expected sales to stagnate or decline a little in the current quarter, and management was evasive when asked on an earnings call if it thought its recent strong growth is susainable. 

The chipmaker expects sales in the September quarter to come between $4.4 billion and $4.76 billion. Earnings per share is likely to be $1.87 to $2.13, the company said Wednesday while announcing its second-quarter results.

According to a poll by Bloomberg, analysts predicted profit of $1.97 a share and sales of $4.59 billion.

Bloomberg said the company’s management sidestepped repeated attempts by analysts to get its view on whether chip demand is peaking.

“Our job isn’t to predict the future, it’s to prepare the company so we can handle anything and we’ve done that,” Chief Financial Officer Rafael Lizardi told the wire service.

Texas, like other chipmakers, benefitted immensely from the emergence of work-from-home phenomenon that the pandemic forced on the people. Demand for mobiles, laptops, printers and several other digital gadgets boomed, and along with that, the demand for chips that go into them.

As offices open and a more blended form of home-office work takes over, many believe peak demand may be behind or nearing and thus the best of times for chipmakers like Texas Instruments may be over.

According to data from Susquehanna Research, it may be too early to say that though. The data shows that delivery lead times for chips are still growing.

Texas second-quarter revenue rose 41% year-on-year to $4.58 billion and EPS rose 39% to $2.05.

Demand from industrial, automotive and personal electronics industries was strong, driving revenue growth of 42% and 43% respectively in its two key businesses of analog and embedded processing chips.


Texas Instruments Falls On Fear Demand For Chips Is Peaking

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Hunt Richardson
Hunt Richardson Jul 22, 2021 7:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
more fear! yay!
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email