Texas Instruments Shares Dip on Soft Profit Forecast

Shares of Texas Instruments (TXN) experienced a decline in extended trading on Tuesday as the analog chipmaker issued a softer than anticipated profit forecast for the third quarter. The company's forecasted earnings per share for Q3 are expected to lie between $1.36 and $1.60, which falls below the midpoint consensus of analysts surveyed by Visible Alpha. Additionally, Texas Instrument's projected revenue for the quarter, ranging between $4.45 billion to $4.8 billion, is largely aligned with Street estimates. Following the release of these forecasts, Texas Instruments' shares fell by over 8% in extended trading. Despite this fall, the stock has seen nearly a 15% increase for 2025 up until the close of Tuesday. For the second quarter, Texas Instruments recorded a 16% year-over-year increase in revenue, reporting earnings of $4.45 billion, exceeding Visible Alpha's analyst consensus. The net income of $1.3 billion, or $1.41 per share, was also higher than last year's second quarter earnings of $1.13 billion or $1.22 per share. Texas Instruments' semiconductors are incorporated in a broad array of electronic devices such as smartphones, vehicles, and satellites. The company's clientele includes notable companies like Apple (AAPL), Ford (F), Nvidia (NVDA), SpaceX, and Medtronic (MDT). In a recent move to bolster their position, Texas Instruments announced last month its plans to invest over $60 billion in chip production in the United States. This includes operations in seven facilities across Texas and Utah.