(Reuters) – Chipmaker Texas Instruments forecast second-quarter revenue above Wall Street estimates on Tuesday, as consumer electronics demand improved after months of declines, more than offsetting the impact from chip inventory corrections in the automotive market.
Shares of the Dallas, Texas-based company rose 5% in extended trading.
The addition of artificial intelligence capabilities to personal computers and smartphones has resulted in an uptick in demand from consumers who had long refrained from upgrading their systems after the pandemic-led buying spree.
Global PC shipments grew around 3% in the first three months of 2024, after a slump that lasted eight consecutive quarters, data from research firm Counterpoint showed.
The company expects revenue with a midpoint of $3.8 billion for the quarter, compared with analysts’ average estimate of $3.77 billion, according to LSEG data.
TI also forecast second-quarter earnings between $1.05 and $1.25 per share, versus analysts’ estimate of $1.16 per share.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar)
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