New York, Jan 29, 2026, 10:56 (EST) — Regular session
- TXN shares edged up 0.1% following this week’s optimistic first-quarter forecast
- TI highlighted increased demand from data centers and announced plans to separate that market segment in its reporting
- The next catalyst on the calendar is a Feb. 24 capital management webcast
Texas Instruments’ shares edged up 0.1% to $216.46 on Thursday, after the chipmaker’s post-earnings rally lost momentum. The stock fluctuated between $214.22 and $221.45 during the session as investors awaited further signals on demand.
Why it matters now: Texas Instruments stands as a key indicator for “analog” chips — those essential components that handle power management and translate real-world signals into data for computers. These sectors often shift first, signaling rebounds when factories and equipment manufacturers ramp up orders.
This week’s update also highlighted a different angle: the AI boom isn’t just driving demand for the fastest processors. Data centers require a steady supply of essential power and signal chips, and TI moves those in large quantities.
An SEC filing Tuesday revealed TI’s fourth-quarter revenue hit $4.42 billion, with earnings per share coming in at $1.27. The company noted these results included a 6-cent charge that wasn’t factored into its original guidance. For the first quarter, TI projects revenue between $4.32 billion and $4.68 billion, with EPS expected in the range of $1.22 to $1.48. It also reported trailing-12-month free cash flow at $2.94 billion, defining free cash flow as operating cash flow minus capital spending, plus incentive proceeds from the U.S. CHIPS Act. (SEC)
During the earnings call, CEO Haviv Ilan revealed data-center revenue surged 70% year-over-year in the December quarter, accounting for 9% of total sales in 2025, Reuters reported. Ilan added that Texas Instruments will begin reporting data-center sales as a distinct end market. Stifel analyst Tore Svanberg said the industry’s inventory correction is “essentially complete,” while Summit Insights’ Kinngai Chan highlighted a widening industrial recovery. (Reuters)
Now the focus moves to cash generation. TI has poured significant funds into expanding manufacturing capacity. Investors are watching closely, trying to figure out how fast margins and free cash flow per share might bounce back if demand holds steady and spending slows down.
TI announced its next investor event: a capital management review slated for Feb. 24 at 10 a.m. Central. CFO Rafael Lizardi, Ilan, and investor relations chief Mike Beckman will cover strategy and how 2025 stacks up against the company’s capital management goals. (Texas Instruments)
Traders are also zeroing in on reporting details. TI’s move to isolate data-center sales might help distinguish AI-driven growth from the slower, cyclical sectors like industrial and personal electronics.
Yet the recovery story has its vulnerabilities. TI highlighted a drop in personal electronics demand, while Reuters noted a memory-chip shortage that might drag down smartphones and PCs — key markets for TI’s wide product range.
Investors are eyeing Feb. 24 for clues on capital spending and the trajectory of free-cash-flow growth, hoping for an early signal on whether strength in data centers can counterbalance a volatile consumer electronics market.
