
NVIDIA Corporation's stocks are experiencing a decline in value following Texas Instruments' release of its guidance for the fiscal year 2025 first quarter. Texas Instruments projected revenue for the quarter to be in the range of $3.74 billion to $4.06 billion, falling short of analysts' expectations of $4.15 billion. The company also expects earnings per share to range from $0.94 to $1.16, below the consensus estimate of $1.37.
Alongside the revenue and earnings forecast, Texas Instruments disclosed an expected effective tax rate of 12% for the fiscal year 2025. This guidance has led to concerns as both NVIDIA and Texas Instruments operate in the semiconductor industry, implying that they may encounter similar challenges. The soft guidance from Texas Instruments might foreshadow difficulties such as decreased demand or other potential obstacles in the market.
Following Texas Instruments' disclosure, other semiconductor companies have also seen a decline in their stock prices, including Intel Corporation and ASML Holding N.V. For the fourth quarter, Texas Instruments surpassed analyst estimates with revenue reaching $4.01 billion and earnings per share hitting $1.30, higher than the predicted $1.17. As a result of these developments, NVIDIA's stock is currently trading 2.19% lower at $144.01 according to data from Benzinga Pro.