New York, January 28, 2026, 18:47 EST — After-hours
- TXN was up about 10% at $216.17 in after-hours trade, after a sharp session swing.
- Texas Instruments forecast first-quarter revenue and profit ranges above Wall Street estimates at the midpoint.
- The company highlighted a 70% jump in data-center revenue in the December quarter and plans to break out that end-market.
Texas Instruments shares climbed nearly 10% on Wednesday and were last up 9.95% at $216.17 in after-hours trading, after the chipmaker’s first-quarter outlook came in above Wall Street expectations. The stock traded between $203.16 and $217.37 in the session.
That matters now because Texas Instruments is a bellwether for the slow-and-steady end of semiconductors — power and signal chips that tend to track industrial and auto demand. Investors have been looking for evidence that a long inventory correction is easing, and the company’s guidance landed as the market tries to price the next leg of the cycle.
It also puts a fresh marker on how far the AI data-center boom is reaching. Graphics chips get the headlines; power management and signal conversion are the plumbing. Texas Instruments is arguing the plumbing is getting busier.
Texas Instruments said it expects first-quarter revenue of $4.32 billion to $4.68 billion and earnings per share of $1.22 to $1.48. For the fourth quarter, it reported revenue of $4.42 billion, net income of $1.16 billion and earnings per share of $1.27, noting EPS included a 6-cent reduction that was not in its original guidance; CEO Haviv Ilan said, “Revenue decreased 7% sequentially and increased 10% from the same quarter a year ago.” (SEC)
On Tuesday’s post-earnings call, Ilan said Texas Instruments will begin breaking out sales to the data-center end-market, after data-center revenue grew 70% in the December quarter and made up 9% of total sales in 2025. Summit Insights analyst Kinngai Chan pointed to a “general industrial recovery,” while Stifel analyst Tore Svanberg wrote that the “inventory correction … [is] essentially complete,” setting up a stronger 2026; TI’s first-quarter ranges compare with LSEG estimates of $4.42 billion in revenue and $1.26 a share in profit. (Reuters)
MarketWatch called out another detail that caught investors: Texas Instruments is guiding to sequential revenue growth from the fourth to the first quarter, a pattern it said hasn’t shown up in years. Cantor Fitzgerald’s Matthew Prisco described the setup as “surprisingly positive,” even as other analysts warned the analog rebound can still feel “stuck in first gear.” (MarketWatch)
The rally in TXN played into a chip-led lift for U.S. equities after the Federal Reserve held rates steady at 3.5%–3.75% and investors pivoted back to earnings and AI spending plans. In the same session, other chip names including Nvidia, Micron and Intel also advanced, while traders tried to gauge whether big tech’s capital spending will translate into returns. (Reuters)
But risks haven’t gone away. Reuters flagged concerns that a global memory-chip shortage could weigh on smartphone and PC sales — a key market for Texas Instruments — and noted geopolitical uncertainty and tariff exposure given the company’s U.S.-focused production; Morgan Stanley said a supply shortage for TI looks unlikely because factory utilization remains low worldwide. Federated Hermes portfolio manager Louise Dudley said “buyers and customers … are reporting that conditions are improving and that they are expanding their growth plans.” (Reuters)
For Texas Instruments, the next debate is less about one quarter and more about the shape of demand: how much is AI-driven data-center pull-through versus a broader industrial turn. Peers such as Analog Devices will be watched for any similar read-through on orders and pricing, but investors want TI’s own disclosure to tighten the story.
The next hard catalyst is the company’s next quarterly report, when the market expects the first clearer look at that new data-center breakout and whether the first-quarter guide holds up. Investing.com lists April 28, 2026 as the next earnings report date. (Investing)
