New York, January 6, 2026, 13:32 EST — Regular session
- TXN jumps more than 8% as traders chase a read-through from Microchip’s upbeat update
- Microchip’s bookings talk revives hopes the analog-chip downturn is easing
- Focus shifts to TI’s Jan. 27 results for confirmation on demand and margins
Shares of Texas Instruments (TXN.O) jumped 8.1% to $191.59 in afternoon trading on Tuesday, after opening at $180.22. The stock traded between $178.01 and $192.81, with about 6.4 million shares changing hands.
The move mattered because it followed a signal from Microchip Technology (MCHP.O) that demand may be firming for the kind of chips used in cars and factory gear, a pocket of the semiconductor market that has lagged the broader rebound. Microchip raised its quarterly sales forecast and pointed to stronger bookings as customers work through excess inventories built up during the pandemic. 1
Analog chips—used to manage power and translate real-world signals in vehicles, industrial machines and consumer devices—tend to swing with the economic cycle. Investors have been looking for proof the inventory hangover is fading ahead of earnings season, and TI is one of the sector’s biggest bellwethers.
Microchip said it expects net sales for its fiscal third quarter to be about $1.185 billion, above its prior guidance range, and its CEO Steve Sanghi said the company was seeing “a fairly broad-based recovery in most of our end markets” with bookings “very strong” in the December quarter. Microchip said it will report full results on Feb. 5 and will not hold a conference call for the preliminary update. 2
Chip stocks moved together on Tuesday: Microchip was up 10.1%, NXP Semiconductors (NXPI.O) rose 7.7%, and ON Semiconductor (ON.O) gained 3.9%.
TI had its own headlines this week after it unveiled new automotive semiconductors and development tools tied to advanced driver assistance systems (ADAS) and higher levels of autonomy, ahead of CES in Las Vegas. “The automotive industry is moving toward a future where driving doesn’t require hands on the wheel,” said Mark Ng, director of automotive systems at TI, as the company detailed a new system-on-chip (SoC) family and other components aimed at in-vehicle computing and sensing. 3
For TI investors, the key question is whether Tuesday’s surge reflects a broader turn in orders or a short-lived sympathy trade. Traders will be listening for commentary on industrial and automotive demand, customer inventory levels, and how quickly pricing and factory loading stabilize.
But the rally also comes with macro risk. U.S. stocks were edging higher on Tuesday as investors watched a run in tech while waiting on labor market data this week for clues on the Federal Reserve’s interest-rate path, a backdrop that can quickly change the tone for growth-sensitive chip shares. 4
