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 per cent in extended trading. In 2022, the stock lost more than 12 per cent as the chip sector faced its worst year since the 2008 financial crisis.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 per cent 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.