Texas Instruments Signals Slump in Industrial Chips Drags On

  • Slowdown in automotive and industrial chips drag down results
  • Company’s wide product range makes it bellwether for industry

A Texas Instruments Inc. integrated circuit microchip on a circuit board.

Photographer: Chris Ratcliffe/Bloomberg
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Texas Instruments Inc. shares slid after the chipmaker delivered a disappointing quarterly forecast, indicating that a slump in demand for industrial and automotive electronic components is dragging on.

Sales in the first quarter will be $3.45 billion to $3.75 billion, the company said in a statementBloomberg Terminal Tuesday. That compares with an average analyst estimate of $4.09 billion, according to data compiled by Bloomberg. Profit will be 96 cents to $1.16 a share, versus a prediction of $1.42.