Texas Instruments' long-term prospects remain steady, but short-term valuation concerns could justify selling for some investors. Learn more on TXN stock here.

Texas Instruments' quarterly profit forecast failed to impress investors as it pointed to weaker-than-expected demand for its analog chips from some customers and underscored tariff-related uncertainty.

The chip giant showed an industrial chip recovery, but guidance came up conservative. Shares of auto and industrial chip giant Texas Instruments ( TXN 0.28%) plunged doubled digits on Wednesday, falling 13.3% as of 2:22 p.m. ET.

Texas Instruments' Q2 2025 results were not as bad as the share price reaction would suggest. Read why it is too early to jump in and buy TXN stock.

By Akriti Shah (Reuters) -Texas Instruments shares sank 11% on Wednesday after executives adopted a markedly cautious tone and issued a weak quarterly profit forecast, intensifying investor concerns over the impact of tariffs.

The Dallas-based chip maker reported higher profit and sales in the second quarter with growth across key revenue segments.

Texas Instruments shares are trading lower on Wednesday following the release of second quarter earnings and third quarter guidance on Tuesday after the market closed.

Businesses making everything from chips to steel reported downbeat results on Wednesday, with U.S. President Donald Trump's trade war inflicting damage even as Japan's deal lifted stocks and hopes that Europe can clinch a similar agreement.