Texas Instruments posted third-quarter revenue of $6.06 billion, up 28% year over year, and earnings per share of $2.62, beating analyst estimates. The company guided fourth-quarter revenue to between $5.8 billion and $6.3 billion and EPS to between $2.45 and $2.79, also above Wall Street forecasts. Despite the upbeat numbers, TXN slipped about 0.5% after hours to roughly $283, following a 2.47% gain in the regular session.
Lam Research reported record fiscal first-quarter revenue of $8.22 billion, up 54% from a year earlier, with adjusted EPS of $2.20. However, the stock fell as much as 10% as the company warned that supply chain constraints limited its December-quarter outlook and that China revenue would decline meaningfully. Lam guided December-quarter revenue to $8.6 billion plus or minus $400 million and adjusted EPS to $2.33 plus or minus $0.15.
Texas Instruments CEO Haviv Ilan said revenue rose 11% sequentially and highlighted growth in industrial, automotive and data center markets. Lam Research CFO Doug Bettinger said the outlook would have been higher without near-term supply chain constraints, with delayed shipments expected to shift into March.
Analyst reaction was mixed. Wells Fargo cut its Texas Instruments price target to $300 from $310 and kept an Equal Weight rating. Cantor Fitzgerald reiterated a Neutral rating and $340 target on Texas Instruments, while maintaining an Overweight rating and $500 price target on Lam Research. The semiconductor results point to strong demand but also reveal supply chain and regional concentration risks.
