July 21, 2021

(Reuters) -Texas Instruments Inc forecast current-quarter revenue slightly below Wall Street estimates on Wednesday, hit by concerns that a shortage of chip components and other prolonged supply constraints could hamper sales.

Shares of the company were down 3.5% at $187.50 in extended trade.

The company expects third-quarter revenue between $4.40 billion and $4.76 billion, with the midpoint below analysts’ expectations of $4.59 billion, according to IBES data from Refinitiv.

Although TI has its own manufacturing plants, investors have been worried about supply chain bottlenecks as well as concerns around high demand and panic buying.

The automotive sector, which accounted for 20% of the chipmaker’s 2020 revenue, was forced to curtail production earlier this year due to the chip shortage.

Total revenue rose to $4.58 billion in the second quarter from $3.24 billion last year. Analysts on average were expecting $4.35 billion, according to IBES data from Refinitiv.

(Reporting by Chavi Mehta in Bengaluru; Editing by Devika Syamnath)

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