Texas Instruments forecasts upbeat revenue on analog chip demand

By Juby Babu

July 22 (Reuters) - ‌Texas Instruments ​forecast ​quarterly revenue above Wall Street estimates on Wednesday, signaling that spending on AI infrastructure and a ‌recovery in industrial and automotive markets are boosting ⁠demand for analog chips.

Tech companies have been investing aggressively in AI, ‌pouring money into data-center construction ‌and the chips needed to support the infrastructure.

While TI does not make the high-performance AI processors such as ​those from Nvidia, it produces analog chips that manage power and convert real-world inputs such as sound, ⁠light and temperature into digital signals for other semiconductors to process.

The results are ​a "testament to a strong analog semiconductor environment" fueled by AI infrastructure buildout, a widening recovery in ​key end markets and the early ‌stages of Edge AI adoption, Stifel analyst Tore Svanberg said, noting that the trend is ⁠expected to continue through the second half of 2026 and into 2027.

The Dallas, Texas-based chipmaker reported second-quarter revenue of $5.46 billion, ⁠up 23% over the year and ahead of analysts' average estimate of $5.25 ​billion, according to data compiled by LSEG.

Quarterly revenue was driven by broad growth led by industrial, data center and automotive, CEO Haviv ‌Ilan said on a post-earnings call with analysts.

The company forecast third-quarter revenue to be between $5.65 ‌billion and $6.15 billion, ahead of the estimate of $5.61 billion. ⁠Yet, its shares fell ‌more than 3% in ​extended trading.

(Reporting by Juby Babu in Mexico City and Anhata Rooprai in Bengaluru; Editing by Shilpi ‌Majumdar)

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