Texas Instruments Stock Drops Following Weak Profit Forecast

The semiconductor giant predicts a slower recovery in key markets, raising concerns about broader industry challenges.

Texas Instruments shares fell over 7% on Friday after the company issued a profit forecast below analysts' expectations, signaling ongoing challenges in the analog chip market.
The company projected first-quarter earnings of $0.94 to $1.16 per share, missing the average analyst estimate of $1.17 per share, and revenue of $3.74 billion to $4.06 billion, slightly below consensus projections.
Weak demand in automotive and industrial markets, which account for over 70% of the company's sales, continues to weigh on performance, with elevated inventory levels further pressuring margins.
Analysts noted that the analog chip market has yet to hit bottom, with recovery timelines potentially extending into late 2025, despite some growth in the China automotive sector.
Texas Instruments' fourth-quarter revenue of $4.01 billion exceeded estimates, but manufacturing costs and inventory buildup remain significant headwinds for the company.