New York, Jan 28, 2026, 05:00 EST — Premarket
- Shares of Texas Instruments jumped roughly 7.5% in premarket trading following a strong Q1 outlook.
- The chipmaker highlighted rising AI-driven data-center demand alongside a rebound in industrial trends.
- Traders will be closely monitoring if the move sticks once regular trading kicks off at 9:30 a.m. EST.
Texas Instruments (TXN.O) jumped 7.5% to $211.30 in premarket action, as of 4:30 a.m. EST. (Public)
The early jump is significant since Texas Instruments is seen as a bellwether for “everyday” chips used in factories, cars, and gadgets—not just the flashy AI players. A stronger outlook here can boost sentiment throughout the analog and embedded segments of the semiconductor sector.
Late Tuesday, the company projected first-quarter revenue between $4.32 billion and $4.68 billion, with earnings per share in the $1.22 to $1.48 range—both figures surpassing LSEG forecasts. The boost came from AI-driven data-center demand and a rebound in industrial sectors. CEO Haviv Ilan noted data-center revenue jumped 70% year-on-year in the December quarter and now accounts for 9% of 2025 sales. Industrial revenue climbed by the “high tens” percentage, while personal electronics declined by the “upper tens,” weighed down by a memory-chip shortage affecting phones and PCs. Stifel analyst Tore Svanberg said the two-year inventory correction in analog chips is “essentially complete,” paving the way for faster growth through 2026. (Reuters)
Texas Instruments isn’t in the fast, high-cost AI processor game that trains large models. Instead, it focuses on analog chips — essential components that handle power and convert real-world signals to digital — and these parts remain common throughout data center racks.
Texas Instruments reported fourth-quarter revenue of $4.42 billion and earnings per share of $1.27, which included a six-cent hit not anticipated in its original guidance. Ilan noted that revenue dropped 7% from the previous quarter but climbed 10% compared to the same period last year. The company’s trailing 12-month cash flow from operations reached $7.2 billion, with free cash flow at $2.9 billion. TI returned $6.5 billion to shareholders and invested $4.6 billion in capital projects. The company calculates free cash flow as cash from operations minus capital spending, plus proceeds from U.S. CHIPS Act incentives. (SEC)
The quarter slightly missed expectations, but the guidance stole the spotlight. Analysts had pegged earnings at $1.29 per share on $4.44 billion in revenue for the December quarter, according to Barron’s. The stock had already climbed roughly 13% in January before the results dropped. (Barron’s)
Some analysts focused more on the first-quarter outlook than the fourth-quarter results. Cantor Fitzgerald’s Matthew Prisco described the report as “surprisingly positive,” noting the midpoint suggests sequential revenue growth in the first quarter — a feat not seen since 2010. Bernstein’s Stacy Rasgon called the numbers “decent,” while Jefferies’ Blayne Curtis said the analog recovery still appeared “sluggish.” (MarketWatch)
Premarket action tends to be volatile, particularly following earnings reports. Early trades usually see lighter volume and wider spreads than during regular hours, making the opening hour the true proving ground.
The best-case scenario is that data-center demand stays strong, while industrial demand starts to pick up, easing worries that the analog slump will drag on. The more likely explanation? A clearer guide driven by easier year-over-year comparisons and customers wrapping up inventory adjustments.
But the scenario can unravel quickly if the industrial rebound falters, the personal electronics downturn worsens, or investors deem the data-center boost too narrow to support a higher multiple. Even solid guidance can lose appeal when traders start scrutinizing margins, capex demands, and the durability of those orders.
On Wednesday, investors will be watching to see if the stock can maintain its gains when regular trading opens at 9:30 a.m. EST, and whether fresh details on the new data-center sales surge prompt analysts to revise their 2026 demand forecasts.
