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Texas Instruments big results causes Intel worries

by on27 April 2017


Who wants chips these days?


Texas Instruments results have got the cocaine nose jobs of Wall Street to take another look at their confident predictions for Intel.

Texas Instruments posted first-quarter earnings of $0.89 per share on Tuesday, which topped the Zacks Consensus Estimate of $0.83 per share. The company made a much better than expected $3.4 billion in revenue. Texas Instruments’ revenue was up 13.1 percent  year-over-year, due in part to greater demand in its automotive and industrial sectors.

TI said that it had elbowed its way into new, forward-looking business sectors. Texas Instruments chairman, president, and CEO Rich Templeton said: "In our core businesses, Analog revenue grew 20 percent and Embedded Processing revenue grew 10 percent from the same quarter a year ago. Operating margin increased in both businesses.”

But TI’s shares fell yesterday. The fear is that the company is beginning to stagnate and what applies to TI could easily apply to Chipzilla.

While Texas Instruments’ stock price has increased steadily over the last two years, Intel’s share price has still been relatively flat and is expected to remain that way.

Intel is expecting to post revenues of around $14.8 billion. The stagnated forecast comes as Intel’s once-thriving PC sector has declined.

Like TI, Intel has started to shift its focus towards businesses with potentially long-term upside, including artificial intelligence. However, it is a longer way towards making money from it.

In other words, if TI could not see a boost in its share price with its results, Intel, which is behind its rival, has next to near no chance.

Last modified on 27 April 2017
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