Texas Instruments said capital expenditure may come in at the high end of its previous guidance.

Texas Instruments shares were falling while STMicroelectronics stock was diving on Thursday, after both makers of analog semiconductors struggled to meet heightened expectations after reporting strong demand in the second quarter.

Analog semiconductors are used for sensors, power management and amplification, making them particularly important for data center and industrial uses.

Both companies reported rapid data-center demand - STMicro raised its 2027 data-center guidance for the second time since June - and they each also reported mid-teen automotive growth as well as industrial sales rising at least 30%.

At Texas Instruments $(TXN)$, adjusted earnings per share jumped 52% to $2.14 a share, comfortably ahead of the $1.94 consensus even with a 5 cent-per-share tax provision, as sales rose 23% to $5.46 billion. Analysts had expected $5.26 billion, according to FactSet.

Its third-quarter guidance for both profit and sales, at the midpoint, also bested forecasts. But CFO Rafael Lizardi told analysts that it may end up spending on the high side of its $2 billion to $3 billion guidance for capital expenditure.

Texas Instruments shares fell 5% in premarket trade.

"This was a crowded long into the print with rather lofty expectations - and given an essentially seasonal guide (+8% Q/Q) when combined with pricing, data center, and cyclical tailwinds, the post-close sell-off makes sense," said Cantor analyst Matthew Prisco. He said the capital-expenditure comment pressures the cash-flow inflection outlook.

STMicro's $(STM)$ (IT:STMMI) financials also were solid. Its adjusted earnings more than doubled to 31 cents per share as sales rose 26% to $3.49 billion. Analysts had expected the Geneva-headquartered firm to earn 28 cents a share on sales of $3.47 billion.

ST, however, said its personal electronics segment will see lower-than-normal seasonality in the third quarter. Revenue in the fourth quarter will top $4 billion mainly driven by AI datacenters and low-Earth-orbit satellite communication.

STMicro ADRs fell 14% in premarket trade.

"With the stock being up 35% in the last three month, we believe the lack of material upgrade is likely to weigh on the shares today relative to market," said UBS analyst Francois-Xavier Bouvignies.

-Steve Goldstein

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July 23, 2026 04:36 ET (08:36 GMT)

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