New York, Jan 30, 2026, 11:38 EST — Regular session underway.
- Texas Instruments shares slipped after early gains evaporated following a rally sparked by its outlook
- Company highlighted accelerating data-center growth and projected Q1 results that surpass Wall Street estimates
- Investors balance AI-driven gains with weakness in consumer electronics and hefty factory expenditures
Texas Instruments slipped 1.7% to $215.15 in late morning trading Friday, surrendering a portion of this week’s strong post-earnings rally.
The pullback follows TI’s surge late last week, fueled by a first-quarter forecast that beat estimates and offered clearer insight into AI data-center spending. The company’s analog chips, which manage power and signal conversion—the less flashy but essential tasks—keep servers operational. (Reuters)
TI reported a year-over-year jump in data-center revenue for the latest quarter and announced plans to report data-center sales separately going forward. Investors took the move as a sign the company believes this segment will continue driving growth through 2026. (Reuters)
Looking ahead to the March quarter, the company forecasted revenue between $4.32 billion and $4.68 billion, with earnings per share expected to hit $1.22 to $1.48. This outlook came in higher than many Wall Street estimates, following an extended period of cautious adjustments in the analog chip sector. (Reuters)
The stock swung sharply: it surged initially on the upbeat outlook, but then selling crept in as investors debated whether the bounce is mainly driven by data-center demand or reflects a wider pick-up in industrial orders, which account for a big chunk of TI’s revenue. (Reuters)
Analysts are shifting their views following the forecast, with at least one leading firm retreating from a bearish outlook. It highlighted stronger order trends and robust data-center demand. (Nasdaq)
Thursday’s close hit $218.97, pushing a streak further amid heavier-than-usual volume. This suggests that both bulls and bears are heavily involved in the post-outlook shuffle. (MarketWatch)
Peers shaped the discussion. Texas Instruments (TI) goes head-to-head with Analog Devices in the analog space. Yet, investors are starting to lump “AI plumbing” plays in with headline compute stocks like Nvidia, despite TI’s focus being on supporting components—not processors. (Reuters)
But the risk case hasn’t disappeared. Some analysts caution that the analog recovery remains patchy, with certain demand areas still weak and consumer electronics facing headwinds. TI also bears the burden of significant U.S. manufacturing investments, which could drag on returns if revenue growth falls short. (MarketWatch)
Another wildcard is the broader capex cycle: should hyperscaler spending stall, the data-center boost that lifted TI’s outlook could fade fast, shifting investor attention back to the slower industrial and auto sectors. (Reuters)
Investors will be closely monitoring if TI’s so-called “green shoots” translate into stronger orders and better margins this quarter. The next earnings report, expected around April 22, 2026, will be a key moment for Wall Street to assess progress. (Zacks)
