(Reuters) – Chipmaker Texas Instruments forecast first-quarter revenue below Wall Street targets on Tuesday as a wider economic downturn threatens to shake last year’s resilient demand in its key industrial market.
Shares of the Dallas, Texas-based company fell 2% in extended trading. In 2022, the stock lost more than 12% as the chip sector faced its worst year since the 2008 financial crisis.
GRAPHIC: 2022 was worst year for chip stocks since 2008 crisis (https://www.reuters.com/graphics/TEXASINSTRUMENT-RESULTS/jnvwywdxqvw/chart.png)
The consumer electronics segment had taken the first hit when red-hot inflation drove people to abandon discretionary spending on smartphones and PCs, but Texas Instruments in October warned that most of its end-markets were starting to feel the pinch.
The chip industry bellwether’s dour outlook was also echoed by peers such as Intel Corp and Micron Technology.
China’s COVID closures during the fourth quarter also pressured TI’s revenue, which fell 3% to $4.67 billion.
The company expects revenue of $4.17 billion to $4.53 billion in the first quarter, the mid-point of which is lower than analysts’ average estimate of $4.41 billion, according to Refinitiv data.
(Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath)
