Texas Instruments (TXN) stock dropped 12% after the company issued third-quarter guidance that fell short of Wall Street’s earnings expectations, raising concerns over the impact of ongoing tariffs and geopolitical uncertainty.

Texas Instruments Inc., a key chipmaker for producers of cars and factory equipment, tumbled after stoking fears that a tariff-fueled surge in demand will be short-lived.

Texas Instruments shares sank 11% on Wednesday after executives adopted a markedly cautious tone and issued a weak quarterly profit forecast, intensifying investor concerns over the impact of tariffs.