Chipmaker Texas Instruments
TI`s shares, which have fallen 6 percent in 2018, climbed more than 5 percent in after-hours trading on Tuesday.
The Dallas-based chipmaker, which primarily develops analogue chips used in industrial equipment, automobiles and consumer electronics, has benefited as automakers increasingly invest in self-driving technology.
The automotive industry accounted for 19 percent of TI`s revenue last year, up from 18 percent in 2016 and 15 percent in the previous year.
The company has continued to invest in its industrial and automotive chip businesses to strengthen its position, Dave Pahl, the company`s vice president and head of investor relations, said on a call with analysts.
"This is based on our belief that industrial and automotive will be the fastest-growing semiconductor markets. They have increasing semiconductor content. These markets also provide diversity and longevity," Pahl said.
TI`s results come one week after semiconductor equipment maker Lam Research Corp`s
Lam`s results dragged other semiconductor stocks lower, and the Philadelphia SE Semiconductor Index <.sox> has since fallen 8.4 percent.
The index has almost doubled in value over the past two years thanks to booming demand for chips used in automobiles, internet-connected devices and consumer gadgets.
For the second quarter, TI expects revenue of between $3.78 billion (£2.7 billion) and $4.10 billion, and earnings of $1.19 to $1.39 per share. The earnings forecast includes an estimated $10 million tax benefit.
Analysts were expecting revenue of $3.90 billion and earnings of $1.23 per share.
"(TI`s second-quarter outlook) indicates that at least for them, the industry must be holding up well. We are not seeing any type of slowdown in demand for TI," said David Heger, an analyst at Edward Jones.
TI`s net income rose 37 percent to $1.37 billion or $1.35 per share in the three months ended March 31. Excluding items, the company earned $1.21 per share, beating analysts` average estimate by 10 cents, according to Thomson Reuters I/B/E/S.
First-quarter revenue rose about 11 percent to $3.90 billion and topped expectations of $3.65 billion.
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