Texas Instruments Q2 Growth, U.S. Chip Investment

Texas Instruments reported a strong second quarter, with revenue rising 16% year-over-year to $4.45 billion and earnings per share of $1.41, exceeding Wall Street expectations. The company's growth was broad-based, highlighted by substantial gains in its analog and embedded processing segments and a notable sales spike in China. Despite these results, shares fell sharply in after-hours trading as Texas Instruments issued a cautious third-quarter outlook, projecting EPS of $1.36 to $1.60 and revenue between $4.45 billion and $4.80 billion. Management cited ongoing supply chain disruptions, geopolitical risks, and concerns about temporary demand surges, particularly from China, as reasons for the cautious guidance. The company announced plans to invest over $60 billion in new U.S. manufacturing facilities to bolster long-term capacity and supply chain resilience. Texas Instruments' performance is viewed as a key indicator for the semiconductor industry and global electronics demand.