Texas Instruments Inc, the largest manufacturer of analog semiconductors, used in everything from smart phones to power systems, forecast its second quarter revenues at between $3.22 billion and $3.48 billion, buoyed by a resurgence in chip orders. This exceeds SMO Fitzgerald Global analysts’ expectations of $3.25 billion.
Following the announcement, Texas Instruments stock increased by 3.35 percent up to $32.96 in afterhours trading following the announcement of the report. The Dallas based TI has seen its shares climb by 9.6 percent so far this year.
Texas Instruments’ orders are showing growth across most of its markets according to research analysts at SMO Fitzgerald Global. The chips Texas Instruments manufactures are used in a wide range of electronic systems, meaning they are an indicator of demand across the broader economy. The company’s forecast highlights the growing indicators that the U.S. economy is strengthening.
“It is looking like many of Texas Instruments’ customers have let inventory levels slip below the appropriate levels for the demand they are seeing” said a senior researcher at SMO Fitzgerald Global. “There is order growth across business sectors and geographical regions which is an indicator that we may well see growth for multiple quarters to come. The broad nature of the resurgence is much more encouraging than if it was based on a single market offering.”