New York, Jan 28, 2026, 13:27 EST — Regular session
- Shares of Texas Instruments jumped roughly 10% by midday following an upbeat March-quarter forecast that beat expectations
- Company highlighted momentum in its data-center segment and announced plans to start separating that market in its earnings reports
- Investors are watching closely for continued strength in industrial demand and potential fallout from softness in phones and PCs
Shares of Texas Instruments soared almost 10% on Wednesday, building on a rally fueled by strong earnings. The chipmaker projected first-quarter revenue and profits that beat Wall Street expectations.
This move is significant since Texas Instruments is viewed as a key indicator for basic chip demand—the power and signal chips embedded in everything from factory equipment to cars and servers—not solely the pricey AI processors.
Investors remain divided over whether the prolonged analog chip inventory glut is finally clearing, and if the AI boom is spreading through the broader supply chain or staying concentrated at the top.
Texas Instruments shares jumped nearly 10%, hitting $216.02 by midday after dipping to $203.16 earlier. The stock had closed Tuesday at $196.63.
Late Tuesday, Texas Instruments projected first-quarter revenue between $4.32 billion and $4.68 billion, with earnings per share expected in the range of $1.22 to $1.48. This marks a notably stronger outlook for a sector that has been relying on cautious “green shoots” talk for months.
CEO Haviv Ilan highlighted cash generation and shareholder returns in the company’s results release, tying those to the outlook. The firm defined free cash flow as operating cash flow minus capital spending, plus proceeds from U.S. CHIPS Act incentives. 1
During the call, Ilan announced the company will start separating out sales related to the data-center market, following a 70% jump in data-center revenue in the December quarter, which now accounts for 9% of 2025 sales. Stifel analyst Tore Svanberg said he thinks “the inventory correction that has plagued the industry during the last two years” is basically over. 2
Chip-related stocks rallied Wednesday, buoyed by upbeat reports from across the supply chain. Louise Dudley, a global equities portfolio manager at Federated Hermes, noted that “companies across the broader supply chain … are reporting that conditions are improving and that they are expanding their growth plans.” 3
Executives quickly shut down the obvious question about pricing. When asked if the company had raised prices going into the March quarter, Ilan was clear: “the answer is no. It’s not pricing related.” 4
The risk scenario is straightforward: the rebound falters. Texas Instruments reported steep drops in personal electronics, while analysts caution that a global memory chip shortage might squeeze smartphone and PC sales, crucial markets for the company’s parts.
Investors are also keeping an eye on whether the multiyear factory expansion will deliver returns quickly enough amid uneven demand. Texas Instruments, meanwhile, plans to cut capital spending in 2026 and is relying on CHIPS-related incentives to support its strategy.
Traders will turn their attention to the Federal Reserve’s policy announcement Wednesday afternoon, looking for clues on interest rates that could jolt high-multiple tech shares. The Fed will release its statement at 2:00 p.m. ET, with Chair Jerome Powell speaking at 2:30 p.m. 5
