Here’s what Texas Instruments’ earnings outlook suggests about chip demand

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The Dallas-based semiconductor company is considered a bellwether because it has the biggest customer list and product catalog, making it an indicator of...

The Dallas-based semiconductor maker is considered a bellwether because it has the biggest customer list and product catalog, making it an indicator of demand across many parts of the economy.

The Texas Instruments campus in Sherman is where the Dallas-based company is building new semiconductor fabrication plants.Dallas-based Texas Instruments Inc., the biggest maker of analog semiconductors, gave a lukewarm earnings forecast for the current period, indicating that a slump in demand for key types of electronics is dragging on.

Revenue in the third quarter will be $4.36 billion to $4.74 billion, the company said in a statement Tuesday. The midpoint of that range would come in below the average analyst estimate of $4.59 billion. The report sent the shares sliding about 3% in extended trading.The outlook bodes poorly for the broader industry because of Texas Instruments’ status as a bellwether.

 

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