Texas Instruments stock falls 12% as CEO warns of tariff concerns

Texas Instruments has seen its stock plummet by 12% following alarming statements from its CEO regarding potential tariff impacts. The semiconductor giant, which primarily serves the automotive and industrial sectors, projected its third-quarter earnings to fall between $1.36 and $1.60 per share, landing at a midpoint of $1.48 per share—just shy of the LSEG estimate of $1.50. In addition, Texas Instruments forecasts revenues to be in the range of $4.45 billion to $4.48 billion, slightly below the anticipated midpoint of $4.63 billion, which was more in line with analysts' expectations of $4.59 billion. During a recent earnings call, CEO Haviv Ilan described the recovery in the automotive market as "shallow," indicating that customers remain cautious due to ongoing tariff concerns and geopolitical instability. Despite the stock's downturn, Texas Instruments did report a notable 16% increase in year-over-year revenue. The company achieved earnings of $1.41 per share on revenues of $4.45 billion, exceeding the LSEG analysts' predictions of $1.35 per share on $4.36 billion in revenue. Ilan noted that some of the surge in second-quarter performance might be attributed to a spike in demand as businesses rushed to stockpile inventory ahead of potential tariffs. In terms of net income, the company recorded a 15% rise to $1.3 billion, equating to $1.41 per share, compared to $1.13 billion, or $1.22 per share, from the previous year.