Analog chipmaker Texas Instruments forecast fourth-quarter revenue and profit below Wall Street estimates on Tuesday (Oct 24), as demand suffers across its key markets including industrial as vendors pull back on orders amid sluggish economic growth.
Shares of the Dallas, Texas-based company fell 4.3 per cent in trading after the bell.
Broader demand from the industrial market - Texas Instruments' biggest by revenue share - has worsened, and the so-far resilient automotive sector has also started showing cracks.
The United Auto Workers strike could amplify concerns that chip demand from that sector would curtail sooner-than-expected, analysts said.
Elevated borrowing costs for a prolonged period has dented end-user demand for vehicles, while bleak demand trends across sectors in China have also weighed on chipmakers. China is a key market for Texas Instruments, with about 25 per cent of its revenue coming from companies headquartered there.
The company forecast current-quarter revenue between US$3.93 billion and US$4.27 billion, compared with analysts' average estimates of US$4.49 billion, according to LSEG data.
The company forecast current-quarter profit per share in the range of US$1.35 and US$1.57, compared to analysts' estimate of US$1.76 per share.