Supply Chain Headwinds Temper TI’s Q3 View After Strong Q2; $20B Revenue Peak in Sight

The automotive chip market faces turbulent challenges as evolving international conditions continue to impact global supply chains. In response, Texas Instruments (TI) has provided a relatively conservative outlook for the third quarter. The company reported Q2 revenue of $4.448 billion, reflecting a 16% year-over-year increase and a 9% sequential rise. During its earnings call, TI executives noted robust U.S. demand early in Q2, alongside inventory builds by some customers preparing for supply chain disruptions. However, by quarter-end, chip order levels had normalized to those expected during a typical recovery period.

For Q3, TI forecasts revenue between $4.45 billion and $4.8 billion—compared to analysts' average projection of $4.57 billion (with some estimates as high as $4.8 billion). The company also anticipates earnings per share of approximately $1.48, slightly below consensus estimates. This guidance appears more cautious than investor expectations for the quarter.

Despite near-term prudence, TI remains firmly optimistic about its long-term prospects, asserting that opportunities outweigh challenges. The company projects its peak annual revenue will exceed the $20 billion milestone by 2025, underscoring confidence in sustained growth.