### Texas Instruments Signals Potential Recovery After Extended Sales Decline

Texas Instruments Inc. CEO, Haviv Ilan, has announced that the company is nearing a recovery phase after enduring eight consecutive quarters of revenue decline. Speaking in a conference call following the release of third-quarter results, Ilan noted that excess inventory has been a significant issue, but the timing seems favorable for an order recovery.

Although three of the company’s primary markets have shown signs of improvement, the key sectors of industrial and automotive chips are still grappling with inventory surpluses. Ilan emphasized the importance of these sectors joining the recovery, remarking, "We really need the broad industrial market and the automotive market to join." When asked for a specific timeline for the rebound, Ilan added, "It's about time, but we haven't seen it yet."

Investors responded positively to the hopeful outlook, driving Texas Instruments’ shares up by approximately 3% in late trading, despite a less optimistic fourth-quarter forecast. The Dallas-based company forecasted fourth-quarter sales to be between $3.7 billion and $4 billion, which fell short of the $4.08 billion average estimate by analysts. Expected profits for the quarter range from $1.07 to $1.29 per share, also below the average projection of $1.35.

For the third quarter, Texas Instruments reported an 8.4% decline in revenue to $4.15 billion, making it the eighth consecutive quarter of revenue contraction. This was, however, slightly better than analysts' expectations of $4.12 billion. The company posted a profit of $1.47 per share, surpassing the estimated $1.37 per share.

The semiconductor industry appears to be sending mixed signals. While Texas Instruments maintains a cautious optimism, other companies have shown varying results. Equipment maker ASML Holding NV cited weak orders and growing customer caution, whereas Taiwan Semiconductor Manufacturing Co. provided a strong forecast, particularly buoyed by demand for advanced chips used in AI computing.

Texas Instruments remains a significant player in the semiconductor market, especially within the industrial equipment and vehicle manufacturing sectors, which together constitute over 70% of its revenue. The company’s products, which perform essential tasks such as registering button inputs and power conversion, might not be as complex as high-end processors, but their importance has grown with the proliferation of electronic features in everyday devices.

In its push to regain a competitive edge, Texas Instruments is heavily investing in new production facilities to move most of its manufacturing in-house. Although this strategy is currently affecting profits, the company believes it will ultimately lead to lower costs and a stronger market position.