Texas Instruments is latest big computer chip maker to boost
confidence in the technology sector with better than expected
second quarter financial results.
Last week chip makers
Intel and Altera also reported better than expected
results.
Both chip makers have predicted profit margins will increase
this year, with Intel
calling the bottom of the recession in April.
Texas Instruments reported second quarter sales of $2.46bn and
profits of $260m, or 20 cents per share.
This is above analyst predictions of 19 cents on revenues of
$2.42bn, according to the
Financial Times.
Although revenues were down 27% on same period a year ago, they
were 18% higher than the first quarter.
The company expects solid growth in the third quarter and
predicts revenues of between $2.5bn and $2.8bn and earnings per
share of between 29 and 39 cents.
Renewed confidence in the technology sector boosted by strong
financial results from chip makers is expected to help bolster
investor confidence.
Microsoft is expected to report its
first ever dip in annual sales this week, but analysts predict
investors will be unaffected.
Analysts believe investors are more likely to be influenced by
the new wave of optimism in the sector and excitement around
Microsoft's new Windows 7 operating system and Office 2010
productivity suite.