Jan 27 (Reuters) – Texas Instruments forecast first-quarter revenue and profit above Wall Street estimates on Tuesday, signaling recovering demand for its analog chips following a prolonged market slump and sending its shares up 5% in extended trading.
After a more than 7% drop in 2025, TI’s shares have risen more than 13% so far this year as investors hoped for signs of a years-long analog supply glut easing after excessive buying in the pandemic resulted in elevated customer inventory levels.
The company is the first among major U.S. chipmakers to report earnings for the September quarter, making its results closely watched. Given the widespread use of its chips, Texas Instruments is also hailed as a demand indicator for various industries.
As opposed to advanced chips that process complex data, TI’s analog chips perform a range of functions, including converting signals from the real world into those understood by computers and power management for systems. The chips can be found in diverse electronic devices, from calculators to smartphones, as well as factories, automobiles and data centers worldwide.
Texas Instruments expects revenue between $4.32 billion and $4.68 billion for the first quarter, compared with an estimate of $4.42 billion, according to data compiled by LSEG.
Analysts have pointed to signs of demand recovery in the industrial market where TI’s chips are used across factories for various purposes including automation.
A restocking cycle is underway in industrial semiconductors, BNP Paribas analysts said earlier this month, adding such cycles typically take a few quarters to complete and would likely drive growth for TI.
TI expects earnings between $1.22 and $1.48 per share in the first quarter, compared with a profit estimate of $1.26 per share.
The company reported fourth-quarter revenue of $4.42 billion, missing an estimate of $4.44 billion, according to data compiled by LSEG.
(Reporting by Arsheeya Bajwa in Bengaluru; Editing by Pooja Desai)
