The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.

By Juby Babu

July 22 (Reuters) - Texas Instruments forecast quarterly revenue above Wall Street estimates on Wednesday, signaling that ‌spending on AI infrastructure and a recovery in ‌industrial and automotive markets are boosting demand for analog chips.

Tech companies have ​been investing aggressively in AI, pouring money into data-center construction and the chips needed to support the infrastructure.

While TI does not make the high-performance AI processors such as those from Nvidia, ‌it produces analog chips ⁠that manage power and convert real-world inputs such as sound, light and temperature into digital signals ⁠for other semiconductors to process.

The results are a "testament to a strong analog semiconductor environment" fueled by AI infrastructure buildout, a widening ​recovery ​in key end markets and ​the early stages of Edge ‌AI adoption, Stifel analyst Tore Svanberg said, noting that the trend is expected to continue through the second half of 2026 and into 2027.

The Dallas, Texas-based chipmaker reported second-quarter revenue of $5.46 billion, up 23% over the year and ahead of ‌analysts' average estimate of $5.25 billion, according ​to data compiled by LSEG.

Quarterly revenue ​was driven by ​broad growth led by industrial, data center and ‌automotive, CEO Haviv Ilan said ​on a post-earnings ​call with analysts.

The company forecast third-quarter revenue to be between $5.65 billion and $6.15 billion, ahead of the estimate of $5.61 ​billion. Yet, its ‌shares fell more than 3% in extended trading.

(Reporting by ​Juby Babu in Mexico City and Anhata Rooprai in ​Bengaluru; Editing by Shilpi Majumdar)