(Bloomberg) — Texas Instruments Inc. gained in late trading after giving an upbeat sales forecast for the current quarter, indicating that demand for electronic components remains strong.

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Sales will be $4.5 billion to $4.9 billion in the first quarter, Texas Instruments said Tuesday in a statement. Profit will be $2.01 to $2.29 a share. On average, analysts predicted profit of $1.90 a share and sales of $4.41 billion, according to data compiled by Bloomberg.

Texas Instruments is the largest maker of analog and embedded processing chips, which go into everything from household gadgets to space hardware. It has the broadest reach in the industry, making its results a bellwether for electronics demand.

The outlook could help soothe investors after many dumped semiconductor shares this year, partly on concern that a surge in revenue enjoyed by chipmakers over the last two years is poised to peter out.

Factories run by the Dallas-based company supply about 80% of its own needs and it’s investing in expanding that footprint. Most other chipmakers are more reliant on outsourced manufacturing, which has impeded their ability to meet the flood of orders received during the pandemic. Texas Instruments has said its revenue and orders reflect true demand and that the amount of expedited orders it’s receiving has slowed.

Shares rose about 4% in extended trading after closing at $173.96 in New York. The stock, which gained 15% last year, has fallen this month alongside with a general decline in chips stocks.

In the fourth quarter, net income rose to $2.27 per share from $1.80 a share a year earlier. Revenue increased 19% to $4.83 billion. Analysts, on average, estimated $1.95 a share on revenue of $4.42 billion.

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