Oppenheimer analysts provided their outlook on Texas Instruments Incorporated (NASDAQ:TXN) ahead of Q3 earnings, scheduled to be announced on Oct 25. The analysts see an in-line set up to Q3 consensus sales/EPS of $5.14 billion/$2.39 and Q4 of $4.96 billion/$2.24.

The analysts believe order velocities have broadly slowed and cancels grown for TI and the group. Supply constraints are easing and lead times normalizing. Core auto/industrial, which represents 62% of sales should be resilient relative to PE (24%) as consumer demand ebbs.

According to the analysts, US restrictions on sales of advanced semi and semi-cap equipment to China increase risk/uncertainty. The impact will largely depend on the US government’s interpretation of rules, though trailing-edge analog ICs appear better insulated than leading-edge HPC/AI logic ICs.