Texas Instruments Inc., a maker of chips for everything from over-the-counter washing machines to satellites, recently released a financial plateau in which the company made an upbeat forecast for the current period, countering concerns that a slowing economy is hurting demand for electronics, Bloomberg reported.

Texas Instruments said in a statement Tuesday that the company's third-quarter revenue will be between $4.9 billion and $5.3 billion. That compares with the average analyst estimate of $4.94 billion. The company said profit per share will be as high as $2.51, beating expectations.

That helped the stock rise 2.6 percent in after-hours trading on Tuesday and boosted shares of chipmakers such as Qualcomm Inc. and Intel Corp. that are also set to report results this week. Chip stocks fell sharply in regular trading.

The outlook offered a glimmer of optimism for chip investors, who have become more pessimistic about the industry this year. The Philadelphia Stock Exchange Semiconductor Index fell 30 percent in 2022, underperforming the major indexes and weighed by concerns that the multi-year demand boom is waning. Texas Instruments has fallen less than its peers this year, down 15 percent as of Tuesday's close.

Texas Instruments has the chip industry's largest list of customers and products, making its report an indicator of demand across the economy. The Dallas-based company had previously lowered its forecast, citing the Covide-related embargo in China as a deterrent to its customers. But they said the plant there is now back in production and is filling more orders.

TI Chief Financial Officer Rafael Lizardi said in an interview that chips used in industrial machinery and vehicles saw strong growth in the quarter. However, they also admitted that consumer products underperformed.

"We did see weakness in personal electronics," Lizardi said. "At this point, a lot of companies have talked about that, so it's not surprising." Lizardi declined to make specific predictions about the market or the chip industry as a whole, saying instead that Texas Instruments will continue to invest in industrial and automotive products, independent of the external environment.

"There will be a recession sometime in the future, probably this year, next year or 2025," he said. "We'll deal with it when that time comes."

Texas Instruments said the company's revenue in automotive chips grew more than 20 percent in the second quarter. More broadly, the company saw a pickup in orders at the end of the three-month period, when the owner of a plant in China was able to start receiving shipments again after the embargo.

Net income for the second quarter beat expectations at $2.45 per share, up from $2.05 per share a year ago. Revenue rose 14 percent to $5.2 billion. Texas Instruments posted its sixth consecutive quarter of double-digit percentage growth in the results reported Tuesday.

As one of the chip industry's pioneers, Texas Instruments is the largest maker of analog and embedded processing chips that are part of a variety of products such as factory equipment and space hardware.

Texas Instruments' management typically declines to make predictions about future demand for electronics, insisting instead that the company can still sell the inventory it produces at some point in the future.

Unlike digital chips such as microprocessors, its products take years to become obsolete, meaning increased inventory is not a red flag for the rest of the chip business. Executives said Tuesday that the company still doesn't have enough inventory.

Texas Instruments makes 80 percent of its chips in its own factories, and the company is investing to expand that footprint. That has led some analysts to worry that the chipmaker will have less cash available for stock buybacks and dividends - benefits that have made its stock a favorite of long-term investors.

Texas Instruments said it wants to achieve more in-house production to avoid the woes of other chipmakers that have relied on outsourced manufacturing and have struggled with shortages during the pandemic.

Dutch chip maker NXP Semiconductors NV (NXP Semiconductors NV) announced its Q2 2022 (Q2, as of July 3, 2022) results after the market hours on Monday (July 25): revenue rose 28% year-on-year (6% quarter-on-quarter) to $3.312 billion, better than the midpoint of its earnings test ($3.275 billion) released on May 2, non Non-GAAP revenue increased 44% (7% QoQ) to $1.193 billion, Non-GAAP gross margin reported 57.8%, better than 57.6% in Q1 and 56.1% in Q2, and diluted EPS increased 78.2% (2% QoQ) to $2.53.

Looking ahead to the current quarter, NXP estimates revenue to be between $3.350-3.500 billion, equivalent to 20% YoY (3% QoQ) at the midpoint ($3.425 billion), and Non-GAAP gross margin is estimated to be between 57.3-58.3% (57.8% at the midpoint).

Bloomberg reported that NXP's Q2 revenue and Non-GAAP gross margin were better than market expectations. Analysts expect NXP's Q3 revenue and Non-GAAP gross margin to reach $3.32 billion and 57.6%, respectively.

NXP's Q2 Non-GAAP margin was 36.0%, better than 35.7% in Q1 and 32.0% in Q2 last year, and this quarter's Non-GAAP margin is expected to be between 35.5-36.7% (median 36.1%).

NXP CEO Kurt Sievers pointed out on Monday that NXP continues to perform well despite the apparent headwinds in the general economy, with customer demand in the automotive, industrial and IoT end markets continuing to outpace NXP's gradually improving supply, even as NXP has risk-adjusted for long-term orders.

Sievers also said that NXP's focus on end markets, the commitment of customers to adopt new designs for volume production is very strong, which in turn reinforces the confidence of NXP investment in line with long-term market demand.

According to NXP, automotive chip revenue increased 36 percent (10 percent QoQ) to $1.713 billion in 2Q2022, with revenue share rising to 51.7 percent from 49.7 percent in 1Q, industrial and IoT chip revenue increased 25 percent (5 percent QoQ) to $713 million, mobile chip revenue increased 12 percent (3 percent QoQ) to $388 million, and communication infrastructure and other NXP's revenue increased by 20% (0.4% QoQ) to USD 498 million.

NXP's channel inventory days in Q2 were 1.6 months, up from 1.5 months in Q1, and the same as Q2 last year.

NXP (NXPI.US) fell 0.58% to close at $174.13 on Monday and fell 2.03% to $170.60 after the bell.