Texas Instruments Faces Investor Concerns Amid Tariff Uncertainties
Texas Instruments' shares dropped nearly 12% premarket after a weak quarterly profit forecast. The company hinted that geopolitical tariffs might impact orders, stirring fears among investors. As tariffs affect the semiconductor industry, TI faces rising costs and potential pressure on profit margins due to increased U.S. investments.
Texas Instruments saw a nearly 12% slump in its shares during premarket trading on Wednesday. This downturn followed a quarterly profit forecast that suggested a decline in demand for its analog chips, raising investor concerns about potential tariff-related disruptions.
During a post-earnings call, TI CEO Haviv Ilan acknowledged that tariffs could be influencing customer orders and revenue, marking a distinctly cautious tone compared to previous quarters. Bernstein analyst Stacy Rasgon noted this shift seemed abrupt and more cautious regarding geopolitical and tariff environments.
While Texas Instruments and other chipmakers have not yet been directly impacted by increased tariffs, rising costs for chip-making tools and reduced customer spending are becoming apparent. ASML and TSMC, significant players in the semiconductor industry, also highlighted tariff-related uncertainties recently.
(With inputs from agencies.)
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