Texas Instruments (NASDAQ: TXN) experienced a significant downturn in its stock price, dropping 13.3% following its second-quarter 2025 earnings report released on Wednesday, July 30, 2025. The analog chip giant reported earnings per share of $1.45 and revenue of $4.6 billion, falling short of analysts' consensus estimates of $1.55 EPS and $4.7 billion in revenue. This performance marked a 10.3% year-over-year decline in the firm's revenue.
The substantial stock decline was primarily triggered by a softer-than-expected profit forecast for the third quarter, signaling a more cautious outlook from management. During the second-quarter earnings call, CEO Haviv Ilan expressed less optimism about a cyclical recovery in the semiconductor industry. Ilan noted that the situation regarding tariffs and geopolitics disrupting supply chains is not yet over, contributing to the conservative guidance.
The unusual continued movement in the stock caught the attention of market observers, including investing journalist Tae Kim, who remarked on social media, "> What a weird second day after earnings move." This tweet, posted on August 4, 2025, underscored the prolonged and unexpected volatility in Texas Instruments' shares in the days following its earnings announcement. The company, a leading producer of analog and embedded processing chips, is a bellwether for the broader semiconductor sector.
The negative sentiment surrounding Texas Instruments also impacted its rivals, with shares of Analog Devices (ADI) and Microchip Technology (MCHP) also experiencing sharp declines. Despite the cautious near-term outlook, Texas Instruments had previously announced plans to invest over $60 billion to expand its chip manufacturing capacity in the United States. This long-term investment strategy aims to strengthen its position in the global semiconductor supply chain, even as the company navigates current market uncertainties.