Texas Instruments forecasts quarterly revenue above estimates

July 22 (Reuters) - Texas Instruments TXN.O forecast quarterly revenue above analysts' estimate on Wednesday, signaling a recovery in industrial chip demand and growing momentum for its AI data center chips.

While TI does not make the high-performance AI processors such as those from Nvidia, it produces analog chips that manage power and convert real-world inputs such as sound, light and temperature into digital signals for other semiconductors to process.

Tech companies have been investing aggressively in AI, pouring money into data-center construction and the chips needed to support the infrastructure.

The analog chipmaker expects third-quarter revenue to be between $5.65 billion to $6.15 billion, compared with analysts' average estimate of $5.61 billion, according to data compiled by LSEG.

TI reported second-quarter revenue of $5.46 billion, up 23%, beating the estimate of $5.25 billion.