April 22 - Texas Instruments said on Wednesday that it expects second-quarter revenue to come in between $5.0 billion and $5.40 billion, a range that exceeds Wall Street estimates of $4.86 billion compiled by LSEG. The company attributed the stronger outlook to rising demand for its analog semiconductor products amid a wave of data center development by technology firms.
Shares of the Dallas-based chipmaker rose more than 7% in extended trading after the guidance was released.
Tightly tied to the momentum in data center build-outs, Texas Instruments highlighted the role its analog chips play in a broad set of hardware functions. The company said these semiconductors are used to regulate power systems and to convert physical signals - such as sound, temperature and light - into digital data that other chips can process.
Tech companies have been spending heavily to support their artificial intelligence initiatives by constructing large-scale data center projects and purchasing substantial quantities of chips to operate those facilities, the company noted. That behavior is a central factor behind the demand Texas Instruments is forecasting for the quarter.
TI also provided second-quarter earnings-per-share guidance of $1.77 to $2.05, above analysts' expectations of $1.57 per share.
As one of the earliest semiconductor firms to report results for the March quarter, Texas Instruments' performance is being watched closely by investors and industry observers. The company is often cited as an indicator of demand trends across multiple industries because its analog components are widely used.
The company and market commentary also referenced an external AI-driven service called ProPicks AI, which evaluates TXN alongside many other companies using more than 100 financial metrics. That service states it applies AI to assess fundamentals, momentum and valuation without bias and cites past winners such as Super Micro Computer (+185%) and AppLovin (+157%).
Key financial guidance and market reaction:
- Revenue guidance: $5.0 billion to $5.40 billion (consensus: $4.86 billion per LSEG).
- EPS guidance: $1.77 to $2.05 (consensus: $1.57).
- Share movement: stock rose more than 7% in extended trading following the announcement.
The companys guidance and market response have implications for semiconductor supply chains and for sectors that depend on large-scale data center infrastructure.