TI forecasts fourth quarter below estimates on weak chip demand in industrial markets

:Texas Instruments forecast fourth-quarter revenue and profit below analysts' estimates on Tuesday as the analog chipmaker navigates a buildup in markets such as automotive and industrial that has forced customers to hold back on orders.

Orders for TI's chips from the automotive market have faltered as customers struggle to clear existing inventory amid a years-long slump in demand stemming from stock-piling during the pandemic.

An ongoing weakness in the industrial market, which utilizes chips for tasks such as automating factories, has also hurt orders.

The company forecast revenue in the range of $3.70 billion to $4.0 billion, compared with analysts' average estimate of $4.07 billion, according to data compiled by LSEG.

While electrification and the rise of autonomous driving technology have led to increased chip content, the boost has been offset by weaker car sales as consumers battle an uncertain economy.

The company's results are closely watched as an indicator of demand across a slew of industries since its chips find widespread application. It is also the first among major U.S. chipmakers to report results for the September quarter.

TI forecast fourth-quarter earnings between $1.07 and $1.29 per share, versus analysts' estimate of $1.36.