© Reuters. FILE PHOTO: Texas Instruments Office is shown in San Diego, California, U.S., April 24, 2018. REUTERS/Mike Blake
(Reuters) – Chipmaker Texas Instruments (NASDAQ:) forecast first-quarter revenue below Wall Street targets on Tuesday as a wider economic downturn threatens to shake last year’s resilient demand in its key industrial market.
Shares of the Dallas, Texas-based company fell 2% in extended trading. In 2022, the stock lost more than 12% as the chip sector faced its worst year since the 2008 financial crisis.
GRAPHIC: 2022 was worst year for chip stocks since 2008 crisis (https://www.reuters.com/graphics/TEXASINSTRUMENT-RESULTS/jnvwywdxqvw/chart.png)
The consumer electronics segment had taken the first hit when red-hot inflation drove people to abandon discretionary spending on smartphones and PCs, but Texas Instruments in October warned that most of its end-markets were starting to feel the pinch.
The chip industry bellwether’s dour outlook was also echoed by peers such as Intel Corp (NASDAQ:) and Micron Technology (NASDAQ:).
China’s COVID closures during the fourth quarter also pressured TI’s revenue, which fell 3% to $4.67 billion.
The company expects revenue of $4.17 billion to $4.53 billion in the first quarter, the mid-point of which is lower than analysts’ average estimate of $4.41 billion, according to Refinitiv data.
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