New York, January 27, 2026, 19:03 EST — After-hours
- TXN shares climbed almost 9% in after-hours trading following Texas Instruments’ upbeat forecast for March-quarter sales and profits, both beating expectations
- CEO Haviv Ilan announced the company plans to start separating data-center end-market revenue figures as AI-driven demand boosts sales of its analog chips
- Investors are tracking signs that a prolonged drawdown in analog-chip inventories may be wrapping up, despite ongoing weakness in consumer electronics
Texas Instruments (TXN) shares jumped almost 9% in after-hours trading Tuesday, following the chipmaker’s upbeat forecast for the March quarter that beat Wall Street’s estimates. The stock closed regular session at $196.63.
The forecast is significant since Texas Instruments serves as a bellwether for industrial and automotive electronics. Customers have spent months cutting back on orders to reduce their inventory. Traders refer to this as an inventory correction — purchasing less now because stockpiles remain high.
This time, the boost extends to AI data centers as well. Texas Instruments, known for its analog chips—components that handle power and convert real-world signals into data readable by computers—continues to appear in racks, even as AI processors dominate the headlines.
TI reported fourth-quarter revenue of $4.42 billion, with earnings per share at $1.27. The company noted that EPS took a 6-cent hit not accounted for in its initial guidance. Looking ahead to the March quarter, TI expects revenue between $4.32 billion and $4.68 billion, and EPS in the range of $1.22 to $1.48. CEO Haviv Ilan highlighted that operating cash flow “underscored the strength of our business model.” PR Newswire
On its post-earnings call, Ilan revealed a 70% jump in data-center revenue during the December quarter, which now makes up 9% of projected 2025 sales. The company plans to start reporting that segment separately. Summit Insights analyst Kinngai Chan noted the outlook also depends on a rebound in the industrial sector; Ilan said industrial revenue rose by “high tens.” Stifel analyst Tore Svanberg remarked that the inventory correction is “essentially complete,” but Ilan flagged a drop in personal electronics revenue by the “upper tens,” citing memory-chip shortages hitting phones and PCs. Reuters
That initial surge could lose steam once investors scrutinize orders and backlog. Any slowdown in data-center spending or a weaker industrial rebound would swiftly bring pricing and inventories back into focus.
By Tuesday’s close, Texas Instruments shares had climbed roughly 13% for the month, noted, priming the stock for a sharp move as traders adjusted positions following the earnings report.
This update provides a rare glimpse into the analog segment of the chip market, an area that hasn’t kept pace with Nvidia’s AI-driven boom. Investors will be keen to catch any similar shifts in sentiment when other chipmakers focused on industrial applications report their demand outlooks later in the season.
Rate-sensitive tech stocks, not just semiconductors, will be under the microscope Wednesday as the Federal Reserve sets to reveal its policy decision at 2 p.m. ET.
Texas Instruments faces a key date coming up on Jan. 30—the ex-dividend cutoff. This timing could influence short-term trades, especially following a recent volatile move after hours.
