NEW YORK, Jan 27, 2026, 17:01 ET — After-hours
- Shares of Texas Instruments jumped roughly 5% in after-hours trading following the chipmaker’s forecast for first-quarter revenue that topped Wall Street expectations.
- The outlook offers an early glimpse into demand for industrial and automotive chips, with TI often viewed as a key bellwether.
- Investors are zeroing in on the Federal Reserve’s policy statement coming Wednesday, alongside corporate updates on spending plans for 2026.
Texas Instruments shares jumped about 5% in after-hours trading Tuesday, driven by its first-quarter revenue forecast of $4.32 billion to $4.68 billion—beating Wall Street’s $4.42 billion estimate. The chipmaker’s fourth-quarter revenue came in at $4.42 billion, slightly under expectations. The stock has gained over 13% this year, rebounding from a more than 7% drop in 2025. (Reuters)
This matters now because TI’s results usually ripple through the market. Its analog chips—the essential components that handle power and convert real-world signals—are embedded in a wide array of products, ranging from industrial machinery to vehicles. That makes the company a key indicator of overall demand.
TI reported fourth-quarter net income of $1.16 billion, or $1.27 per share, including a six-cent hit to earnings per share that hadn’t been factored into its original guidance. CEO Haviv Ilan noted revenue fell 7% sequentially but rose 10% year-over-year. The company stuck to its first-quarter revenue forecast. (PR Newswire)
After-hours moves often seem more straightforward than they really are. With lighter trading after the 4 p.m. ET close, prices can swing sharply as investors digest guidance, margins, and the tone of earnings calls.
TXN closed regular hours at $196.63, barely moving from its previous level. Meanwhile, the iShares Semiconductor ETF gained roughly 2.4% during the session.
TI’s guidance frequently serves as a barometer for analog demand among semiconductor traders. This is especially true alongside peers like Analog Devices and Microchip Technology, which cater to similar industrial and automotive markets.
Yet the recovery remains patchy across different end markets. Demand for consumer electronics has been inconsistent, and orders can halt abruptly when customers feel overstocked.
Trade policy adds another layer of uncertainty to chip ordering. Tariff news often prompts customers to accelerate shipments only to halt them abruptly, making short-term demand unpredictable.
Wall Street wrapped the regular session with the S&P 500 climbing 0.44% and the Nasdaq gaining 0.98%, but the Dow dropped nearly 1% as health insurers took a hit. Investors are gearing up for Wednesday’s Federal Reserve policy announcement and upcoming earnings from major tech firms. B. Riley Wealth strategist Art Hogan pointed out that eyes will be on whether the market “is OK with increasing spending CapEx to chase the AI dream.” (Reuters)
During the post-results call, Ilan noted that “the overall semiconductor market recovery is continuing,” with the company pointing to gains in industrial, automotive, and data-center sectors. TI also announced a capital management call scheduled for Feb. 24, likely to draw attention to spending strategies and shareholder returns after the stock jumped in after-hours trading. (Marketscreener)
