Yazılar

Texas Instruments Warns of Cooling Demand After Tariff-Driven Surge

/in /tarafından

Texas Instruments (TXN.O) said on Thursday that customer demand has slowed following a sharp spike in April, when buyers rushed to place orders ahead of U.S. President Donald Trump’s “Liberation Day” tariff announcement. Shares of the chipmaker fell nearly 4% after the update, delivered at the Citi Global TMT Conference by Chief Financial Officer Rafael Lizardi.

Lizardi explained that January-to-April demand was temporarily lifted by tariff-related market dynamics but noted that “things did slow down after April, or at least didn’t grow as they normally would have.”

The finance chief also addressed speculation about potential government stakes in semiconductor firms, clarifying that TI has not been approached about equity participation in exchange for CHIPS Act incentives. The Trump administration’s decision to take a 9.9% stake in Intel (INTC.O) has fueled debate about government involvement in the industry, but Lizardi said, “Nothing along those lines has been discussed or proposed” for TI.

Under the CHIPS and Science Act, the Commerce Department has earmarked up to $1.6 billion in funding for Texas Instruments. Lizardi said the agreement, initially signed under the Biden administration and later adjusted under Trump, saw only “minor, favorable changes.”

TI’s free cash flow remains under pressure from elevated capital expenditure, with share repurchases continuing but at a reduced pace. In July, the company issued a profit forecast that signaled weaker-than-expected demand for its analog chips, particularly from the automotive sector, which has been slow to rebound. Despite challenges, TI reiterated that four of its five end markets are showing recovery, with autos lagging due to broader economic uncertainty.

Trump Signals Upcoming Tariffs on Steel and Semiconductor Chips

/in /tarafından

U.S. President Donald Trump announced on Friday that he plans to impose tariffs on imports of steel and semiconductor chips in the coming weeks. Speaking to reporters aboard Air Force One en route to a meeting with Russian President Vladimir Putin in Alaska, Trump said the initial rates would be lower to give companies time to expand domestic production, followed by higher rates later. Exact tariff percentages were not disclosed.

“I’ll be setting tariffs next week and the week after on steel and on, I would say, chips,” Trump said, adding that he expects companies will choose to manufacture in the U.S. rather than face steep duties.

Trump has previously disrupted global trade with broad tariffs on exports to the United States and sector-specific duties, including on automotive products. In February, he raised steel and aluminum tariffs to 25% and later announced a potential increase to 50% to support domestic manufacturers. Last week, he also indicated a 100% tariff on semiconductor imports, though companies that commit to building U.S. production would be exempt.

The announcement coincided with Apple’s (AAPL.O) news that it will invest an additional $100 billion in the United States, underscoring the administration’s push for domestic manufacturing.

Applied Materials Shares Drop on Weak China Demand and Tariff Uncertainty

/in /tarafından

Applied Materials (AMAT.O) shares fell roughly 12% in Friday morning trading after the chip-equipment maker issued a disappointing revenue and profit forecast, raising investor concerns about the impact of U.S.-China trade tensions on demand. The decline follows warnings from Dutch rival ASML (ASML.AS), highlighting continued uncertainty over the effects of U.S. tariffs on the semiconductor industry.

CEO Gary Dickerson cited “wide-ranging implications for the semiconductor industry” during a post-earnings call, pointing to lower visibility and heightened uncertainty in the near term due to dynamic policy developments. China, which represented 35% of Applied Materials’ July-quarter sales, has become a key risk as U.S. export restrictions weigh on new equipment orders.

Smaller peer KLA Corp (KLAC.O), which also has a strong presence in China, expects softer demand amid ongoing Sino-U.S. trade tensions, while Deutsche Bank strategists warned that volatility in China is clouding visibility into earnings potential both geopolitically and cyclically.

Applied Materials forecast fourth-quarter revenue of $6.70 billion, plus or minus $500 million, below analysts’ consensus of $7.33 billion. Its projected profit also fell short of expectations. If losses persist, the company could shed over $18 billion from its $151.06 billion market value as of Thursday’s close.

J.P. Morgan analyst Harlan Sur suggested that the slowdown in China reflects timing of spending rather than structural weaknesses. Applied’s stock has risen 1.2% year-to-date, trailing the Nasdaq (.IXIC) up 12.3% and the S&P 500 (.SPX) up 10%.

Shares of other chip-equipment makers, including KLA Corp and Lam Research (LRCX.O), also fell following Applied’s results, down 5.5% and 4.3%, respectively. Applied reported third-quarter revenue of $7.30 billion, up 8% year-on-year and above the $7.22 billion consensus. Its stock trades at a forward price-to-earnings ratio of 19, lower than ASML’s 26.04, Lam’s 23.56, and KLA’s 26.82.