Texas Instruments provided a revenue forecast for the December quarter that was lower than expected, citing deteriorating demand in nearly every sector in the economy. It sent the company's stock lower in after-hours trading.

"During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," the company's CEO Rich Templeton said in the release.

For the September quarter, the semiconductor company reported earnings per share of $2.47, compared with Wall Street's consensus estimate of $2.39, according to FactSet. Revenue came in at $5.24 billion, which was above analysts' expectations of $5.14 billion.

But Texas Instruments (ticker: TXN) forecast revenue for the current quarter of $4.4 billion to $4.8 billion, which was well below the consensus call for $4.94 billion.

On a conference call with investors and analysts, management said it was seeing rising order cancellations and deteriorating order rates in the current quarter. The company also said it saw weakness broadening in the industrial sector and expects more weakness in nearly all other sectors. Only car manufacturing remains a strong area.

The chip maker sells the basic building-block chips that go into products in nearly every sector of the economy, from autos and industrial equipment to consumer electronics. Because of the broad-based nature of the company's more than 100,000 customers, investors consider it to be a bellwether for the technology industry, and the economy.

Texas Instruments shares dropped as much as 5% to $154.01 shortly after the release.

Texas Instruments shares were down 14% so far this year as of Tuesday's close. For the same period, the iShares Semiconductor ETF, which tracks the performance of the ICE Semiconductor Index, has declined 39%.