New York, January 28, 2026, 10:27 ET — Regular session
- TXN shares climbed roughly 7% after upbeat guidance sparked renewed optimism for analog-chip demand
- TI highlights rapid growth driven by AI data centers and announces plans for more detailed reporting
- Investors are balancing hopes for a stronger cycle with concerns over hefty spending and weaker consumer electronics demand
Texas Instruments shares jumped 6.7% to $209.89 in early trading Wednesday, following a first-quarter forecast that beat expectations.
Traders are hunting for clues that the AI-driven data-center expansion is boosting demand beyond the headline-grabbing chips. TI’s analog chips—those essential components that handle power and signal conversion within electronics—operate further down the hardware chain.
The timing is crucial. U.S. stocks, fresh from record highs, face a wave of earnings reports, with investors eyeing the Federal Reserve’s policy announcement set for Wednesday. A flurry of megacap tech earnings, known to sway market mood, are also due.
TI announced fourth-quarter revenue of $4.42 billion and net income of $1.16 billion, or $1.27 per share, in its latest earnings report. CEO Haviv Ilan highlighted that cash flow from operations over the trailing 12 months reached $7.2 billion. During that period, the company invested $4.6 billion in capital expenditures and returned $6.5 billion to shareholders.
TI’s forecast for the first quarter projects revenue between $4.32 billion and $4.68 billion, with earnings ranging from $1.22 to $1.48 per share. On the earnings call, Ilan highlighted a 70% year-over-year jump in data-center revenue during the December quarter and announced the company will start reporting data-center sales separately. Stifel analyst Tore Svanberg noted that the inventory correction hitting the sector “is essentially complete.” Reuters
Not everyone is convinced it’s smooth sailing. Morgan Stanley analysts highlighted that years of heavy factory spending have squeezed returns. They flagged capital expenditures as a looming challenge and also raised concerns about consumer demand and trade tensions, especially for U.S.-focused production.
The impact rippled through the sector. Analog Devices climbed 3.1%, while Nvidia gained 1.7% in morning trading.
The rally hinges on a key risk: a cutback in data-center spending by hyperscalers could derail it, as could continued sluggish demand for phones and PCs disrupting orders. The “better quarter” narrative could unravel quickly. Investors are also watching closely how much cash TI needs to pour into expanding capacity.
Investors will turn to earnings reports from Microsoft, Meta, and Tesla after Wednesday’s close, followed by Apple on Thursday. These updates will offer a fresh glimpse into AI spending, potentially backing TI’s outlook or challenging it.
