Texas Instruments stock falls after signalling weakening demand

Published 04/09/2025, 19:48
© Reuters.

Investing.com -- Texas Instruments Incorporated (NASDAQ:TXN) stock dropped 3.9% after comments from its CFO at the Citi 2025 Global TMT Conference indicated weakening sentiment in recent months.

During the conference in New York, Senior Vice President and Chief Financial Officer Rafael Lizardi noted that market sentiment had deteriorated since earlier in the year. "I think sentiment was stronger in April and May than it was in July and August," Lizardi said, attributing part of this weakness to order pull-ins around Liberation Day that created "temporary strength and then some temporary weakness."

While Lizardi highlighted that the recovery has been "broad-based across end markets" with industrial leading the way and showing "double-digit growth across both sectors and geographies," he also pointed out that the automotive market has been lagging in the recovery. According to the CFO, the automotive downturn was "both later and shallower," which explains why "the recovery is later and shallower as well."

The semiconductor maker’s shares declined as investors reacted to these comments about the recent softening in demand patterns, despite the overall recovery narrative. The stock movement reflects concerns about potential near-term challenges in the company’s business outlook, particularly in the automotive segment.

During the conference, Lizardi also discussed TI’s strategy to address key markets for its analog and embedded processing technologies and the company’s positioning for future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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