Texas Instruments beats revenue estimates as chip demand holds strong

Texas Instruments on Tuesday surpassed estimates for second-quarter revenue, as shipments improved with the easing of supply-chain bottlenecks and sustained demand for its chips, sending its shares up 4 per cent in extended trade.

Some of the major chip companies have so far weathered the downturn from record-high inflation and unrest in some European markets as demand for high-end chips that go in data centres and electric vehicles continues to hold strong.

Texas Instruments forecast third-quarter revenue in the range of US$4.90 billion to US$5.30 billion. Analysts had expected revenue of US$4.97 billion, according to Refinitiv data.

Earlier, Taiwan's TSMC projected quarterly revenue growth that could be its highest in 10 quarters.

Texas Instruments said revenue in the quarter ended Jun 30 grew 14 per cent to US$5.21 billion, beating analysts' estimate of US$4.62 billion.

Net income was US$2.29 billion in the second quarter, a 19 per cent rise from a year earlier. Excluding items, it earned US$2.45 per share, higher than analysts estimate of US$2.12 per share.