(Reuters) -Texas Instruments forecast quarterly revenue below market estimates on Tuesday, as chip inventory builds up in its key markets with initial signs of weakness in the automotive sector.
The analog chipmaker’s shares fell about 4% in extended trading.
The pressure of high borrowing costs has dampened end-market demand for the automotive industry. U.S. new vehicle sales are expected to rise just 1% in 2024, according to car shopping website Edmunds.
Demand from industrial customers – one of the company’s largest – has waned as global manufacturing activity remains weak, adding to the automotive segment’s weakness.
The analog chipmaker forecast first-quarter revenue between $3.45 billion and $3.75 billion, compared with analysts’ average estimates of $4.06 billion, according to LSEG data.
Texas Instruments expects earnings in the range of 96 cents- $1.16 per share for the current quarter, missing analysts’ estimate of $1.41.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Krishna Chandra Eluri)
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