Texas Instruments soft revenue outlook fuels chip supply concerns

Texas Instruments Inc forecast current-quarter revenue slightly below Wall Street estimates on Wednesday, leaving investors concerned about the chipmaker’s ability to meet searing demand in the face of a global shortage.

Shares of the Dallas, Texas-based company were down nearly 5% at $185.5 aftermarket.

TI has been ramping up its production capacity even as supply constraints persist, eyeing a boom in demand from many of its end markets. In June, TI said it would buy one of Micron’s factories for $900 million, making it the company’s fourth analog chip-manufacturing plant.

“The common perception in the market is that demand still remains very strong, and many investors expect above-average revenue growth for the next couple of quarters,” said Edward Jones analyst Logan Purk.