Texas Instruments Q3 2025 Forecast: Chip Demand Decline Causes Shares to Drop 5.4%
Bill McColl
Bill McColl 2 years ago
Senior Contributor & Veteran Media Producer #Company News
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Texas Instruments Q3 2025 Forecast: Chip Demand Decline Causes Shares to Drop 5.4%

Texas Instruments warns of a slowdown in chip demand affecting Q3 2025 results, causing a notable dip in stock prices despite Q2 earnings beating expectations.

Bill McColl brings over 25 years of expertise as a senior producer and writer across TV, radio, and digital media, leading teams in delivering impactful news coverage on major global events.

Highlights

  • Texas Instruments projects Q3 2024 sales and profits below analyst predictions.
  • Demand softness outside the automotive sector is expected to weigh on upcoming quarter results.
  • Shares declined 5.4% despite Q2 earnings and revenue surpassing estimates.

On Wednesday, Texas Instruments (TXN) shares fell 5.4% after the semiconductor giant issued a cautious outlook for the third quarter of 2024, citing weaker chip demand impacting its performance.

The company forecasted Q3 sales between $4.36 billion and $4.74 billion, with the midpoint slightly under analysts’ consensus of $4.59 billion. Earnings per share are expected in the range of $1.68 to $1.92, compared to analyst estimates of $1.91.

TI highlighted a decrease in new chip orders across most sectors except the automotive industry. CEO Haviv Ilan emphasized ongoing market softness beyond the automotive segment, similar to trends seen in Q1.

In Q2 2024, Texas Instruments reported an EPS of $1.87 and revenue of $4.53 billion, both surpassing analyst expectations despite a 13% revenue decline.

Although shares dipped on the news, Texas Instruments stock remains elevated for the year 2023.

Texas Instruments Stock Performance 2023
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