Texas Instruments beats revenue estimates as chip demand holds strong

A Texas Instruments Office is shown in San Diego, California, U.S., April 24, 2018. REUTERS/Mike Blake

July 26 (Reuters) – Texas Instruments Inc (TXN.O) on Tuesday surpassed estimates for second-quarter revenue, as shipments improved with the easing of supply-chain bottlenecks and sustained demand for its chips, sending its shares up 4% in extended trade.

Some of the major chip companies have so far weathered the downturn from record-high inflation and unrest in some European markets as demand for high-end chips that go in data centers and electric vehicles continues to hold strong.

Texas Instruments forecast third-quarter revenue in the range of $4.90 billion to $5.30 billion. Analysts had expected revenue of $4.97 billion, according to Refinitiv data.

Earlier, Taiwan's TSMC (2330.TW) projected quarterly revenue growth that could be its highest in 10 quarters. (https://reut.rs/3J0F8nt)

Texas Instruments said revenue in the quarter ended June 30 grew 14% to $5.21 billion, beating analysts' estimate of $4.62 billion.

Net income was $2.29 billion in the second quarter, a 19% rise from a year earlier. Excluding items, it earned $2.45 per share, higher than analysts estimate of $2.12 per share.

Reporting by Yuvraj Malik in Bengaluru; Editing by Krishna Chandra Eluri

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Source:www.reuters.com