Texas Instruments' Q2 revenue is $3.82 billion! Chip demand stabilizes
On July 24, Texas Instruments announced second-quarter revenue of $3.82 billion, in line with analysts' expectations; second-quarter earnings per share of $1.22, compared with $1.87 in the same period last year; second-quarter operating profit of $1.25 billion, compared with analysts' expectations of $1.24 billion; third-quarter revenue of $3.94 billion to $4.26 billion, compared with analysts' expectations of $4.14 billion.
Texas Instruments management said that the recovery in sales of smartphones and personal computers has enabled companies to clear excess inventory caused in previous years, thereby increasing orders for the company's chips.
Benefiting from the stable demand for analog chips in markets such as personal electronics and lower manufacturing costs, Texas Instruments' revenue forecast for the next quarter is also in a solid range, with third-quarter revenue expected to be between $3.94 billion and $4.26 billion, and earnings per share between $1.24 and $1.48.
Haviv Ilan, CEO of Texas Instruments, said that while the industrial and automotive markets continued to decline month-on-month, all other terminal markets were growing, and the company was optimistic about the long-term opportunities for its chips in the industrial and automotive markets. In addition, business in China grew by about 20% in the second quarter.
It is worth noting that NXP's latest financial report also revealed the weakness of the automotive market. NXP's revenue in the second fiscal quarter was US$3.13 billion. Among them, automotive chip revenue decreased by 7% year-on-year to US$1.728 billion, but industrial and Internet of Things chip revenue increased by 7% year-on-year to US$616 million.
Texas Instruments Chief Financial Officer Rafael Lizardi said that the difference in the current cycle is that different regions and regions However, Texas Instruments' optimistic performance forecast has triggered investors' optimism that customer orders will accelerate growth and help offset the escalation of analog chip inventory and demand anxiety caused by NXP Semiconductors.have performed very differently. But he expects total revenue to increase month-on-month this quarter, as some electronic product manufacturer customers are preparing for production capacity for the holiday shopping season at the end of the year.
Edward Jones analyst Logan Purk said, "Analog chip demand has bottomed out and is starting to see some incremental growth."
Although the latest semiconductor industry outlook data released by the World Semiconductor Trade Statistics Organization (WSTS) recently showed that the analog chip market is still sluggish, the market size is expected to shrink by 2.7% in 2024 after shrinking by 8.7% in 2023. However, the positive side is that WSTS expects the pace of shrinkage of the analog chip market in 2024 to be significantly reduced compared with 2023. Combined with the release of the performance of analog chip giant Texas Instruments, which is expected to continue to show month-on-month improvement in Q3, it largely indicates that the analog chip market is gradually entering a recovery.
