Texas Instruments Outlook Eases Fear of a Chip Downturn

  • Chipmaker says sales dip again in industrial, automotive units
  • Forecast follows more pessimistic view offered by rival NXP

The Texas Instruments headquarters in Dallas, Texas.

Photographer: N. Johnson/Bloomberg
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Texas Instruments Inc. provided a sales outlook that signals an inventory glut is coming to an end, reassuring investors that a revival is underway in key markets for the company’s chips.

Suppliers of electronic parts used in the industrial and automotive markets have seen their growth wiped out by slowing orders from customers who have found themselves stuck with too much inventory. Texas Instruments’ forecast stoked optimism that orders may now be on the rise and helped counter fresh concern caused by peer NXP Semiconductors NV, which on Monday gave projections that fell well short of estimates.