New York, January 28, 2026, 12:38 p.m. EST — Regular session
• Texas Instruments jumped in midday trading following a bullish first-quarter forecast
• The firm highlighted growing demand driven by AI data-center expansions and stronger industrial output
• Investors are cautious, waiting to see if the rally sticks as clients manage chip stockpiles
Texas Instruments shares surged 9.1% to $214.62 midday Wednesday after the chipmaker raised its first-quarter guidance above Wall Street expectations. The company forecast revenue between $4.32 billion and $4.68 billion, with earnings per share ranging from $1.22 to $1.48. CEO Haviv Ilan highlighted a 70% jump in data-center revenue during the December quarter, which now accounts for 9% of projected 2025 sales, while industrial demand climbed by the “high tens.” Stifel analyst Tore Svanberg described the inventory correction as “essentially complete.” 1
These figures are crucial since Texas Instruments occupies a key spot in the supply chain. Its analog and embedded chips appear in factory equipment, automobiles, and the steady, unflashy electronics that usually track the real economy.
Investors have been watching for signs that the analog-chip “inventory correction”—where customers run down stockpiles instead of placing new orders—is easing. The latest development: TI is treating data centers as a full business segment, not just a side note. That shift ties the company more directly to the AI spending cycle than many bulls anticipated.
TI reported $4.42 billion in revenue for the fourth quarter, with net income hitting $1.16 billion and earnings per share coming in at $1.27. The company noted that EPS was dragged down by 6 cents, a hit not included in its initial guidance. Ilan pointed out that revenue dropped 7% from the previous quarter but was up 10% compared to the same period last year. Over the past year, TI shelled out $4.6 billion on capital expenditures and returned $6.5 billion to shareholders. 2
B of A Securities analyst Vivek Arya acted fast, upgrading Texas Instruments from “underperform” to “neutral” and lifting his price target to $235 from $185, Benzinga reported. 3
Unlike Nvidia, known for its high-end graphics processors powering AI training and inference, TI focuses on the quieter side — chips that handle power management and signal conversion to keep machines running smoothly. Analog Devices is a key competitor in this space.
The sector-wide AI rally is still driving the move, but it could reverse quickly. The Philadelphia SE Semiconductor index climbed 1.7%, though Reuters highlighted a global memory-chip shortage weighing on smartphones and PCs—a major market for TI. Morgan Stanley also flagged tariff and geopolitical risks, even as a TI supply crunch seems unlikely given low factory utilization. Louise Dudley, a portfolio manager at Federated Hermes, noted buyers are sensing “conditions are improving,” linking spending plans to overall sentiment. 4
Traders will be watching closely for follow-through: can TI’s data-center demand keep its momentum as the business ramps up? And will the industrial sector’s strength persist as orders flow into February? The next clear trigger comes Jan. 30—the record date for TI’s $1.42 quarterly dividend, payable Feb. 10, the company confirmed earlier this month. 5
