July 22 (Reuters) – Texas Instruments forecast quarterly revenue above analysts’ estimate on Wednesday, signaling a recovery in industrial chip demand and growing momentum for its AI data center chips.
While TI does not make the high-performance AI processors such as those from Nvidia, it produces analog chips that manage power and convert real-world inputs such as sound, light and temperature into digital signals for other semiconductors to process.
Tech companies have been investing aggressively in AI, pouring money into data-center construction and the chips needed to support the infrastructure.
The analog chipmaker expects third-quarter revenue to be between $5.65 billion to $6.15 billion, compared with analysts’ average estimate of $5.61 billion, according to data compiled by LSEG.
TI reported second-quarter revenue of $5.46 billion, up 23%, beating the estimate of $5.25 billion.
(Reporting by Anhata Rooprai in Bengaluru; Editing by Shilpi Majumdar)
Comments