Texas Instruments' pessimistic forecast shocks Wall Street, causing its stock price to plunge 10% in pre-market trading.

On Wednesday morning, before the market opens in Eastern Time, the stock price of Texas Instruments plummeted by more than 10%. Despite the company's second-quarter performance exceeding expectations, the revenue forecast for the third quarter was lower than Wall Street's estimates. The chip manufacturer's second-quarter revenue reached $4.45 billion, surpassing analysts' consensus expectation of $4.36 billion; earnings per share were $1.41, also higher than the expected $1.35. Net profit increased by 15% year-on-year to $1.3 billion.