Optimistic Texas Instruments’ Shares Rise

Texas Instruments has raised its third-quarter earnings forecast on the expectation of a gradual recovery in the global semiconductor market, predicting much stronger earnings than it predicted back in July. TI has not stated that it expects end demand to increase, but it has revealed that TI customers have been increasing production. 
 
Several other companies in the semiconductor industry, such as Intel, seem to be raising their expectations for the third quarter, hinting at an overall improvement in an industry that originally suffered because of the recession’s crippling impact on demand and corporate technology spending. In particular, Intel’s brighter forecast provided much hope for the rest of the industry, sending shares up across the board.
 
Texas Instruments’ current earnings estimate sits at a range from 37 to 41 cents per share, raised from a previous 29 to 39 cent per share estimate and topping average analyst expectations of 36 cents per share. TI also raised its revenue forecast to a range from $2.73 billion to $2.87 billion from its previous expectation of revenue somewhere between $2.5 billion and $2.8 billion.

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