Texas Instruments' stock surged 9.29% during Wednesday's trading session following the company's release of first-quarter guidance that exceeded Wall Street expectations. The semiconductor company forecast revenue between $4.32 billion and $4.68 billion for the current quarter, above the consensus estimate of $4.42 billion, with earnings projected at $1.22 to $1.48 per share versus the expected $1.26.
The optimistic outlook signals a potential recovery in demand for analog chips, with the guidance implying sequential revenue growth from the fourth quarter to the first quarter for the first time in 16 years. Company executives cited a recovery in the industrial market and noted significant strength in the data center segment, which has benefited from the ongoing artificial intelligence boom driving demand for infrastructure components.
Multiple Wall Street firms responded to the positive guidance by raising their price targets on Texas Instruments shares, with upgrades including Bank of America moving the stock from Underperform to Neutral and increasing its price objective to $235. Analysts highlighted that the data center business is becoming a significant growth driver for the company, while improving demand in industrial markets adds to the recovery narrative for the broader semiconductor sector.
Comments