because of tariff, industrial weakeness, and internal operational issue.
1. Tariff raises equipment cost and induces demand uncertainty
2. Industrial and automobile softness. They cited that the recovery of autombile sectors is shallow. Industrial orders drove the growth of Q2, but now they said that industrial orders are lossing some momentum. Remember, they said last quarter that the rebound was robust.
3. Factory load is flat for Q3. This will put a pressure on Margin, which will be flat for currrent quarter. Yet, investors were expecting margin expansion.
Managment shited tone from Q1 to Q2.
In short, disappointment outlook reflect the tariff, macro economy, and Txn unique internal issue.
Some of the factor may cause broader concern among investers.
But, TXN did say that AI demand is strong.
