Texas Instruments soars after beating on Q1 revenue, with strong guidance to match
Texas Instruments surged more than 10% in premarket trading on Thursday after the chipmaker reported better-than-expected Q1 results and a surprisingly strong second-quarter forecast, driven by growing demand for its analog chips.
Per its press release, the company reported the following results for its fiscal first quarter:
Revenue of $4.83 billion, handily beating analyst estimates of $4.52 billion (compiled by Bloomberg).
Adjusted earnings per share of $1.68, up 31% year over year and topping Wall Street estimates of $1.37.
Texas Instruments specializes in making analog chips, which regulate power systems and convert signals like sound or light into digital data that semiconductors can process. Though far from the sexy chips that do AI compute work, like the heavily in-demand kind that Nvidia and others design, TI’s products still seem to be getting a lift from all this spending.
Noting a “continued acceleration in industrial and data center” verticals, the company’s top line seemed to get a big boost, with demand from industrial end markets up 30% and data center demand growing 90% year on year, too. CEO Haviv Ilan commented in the earnings call, “We remain well positioned with inventory and capacity that allows us to support our customers with competitive lead times through the cycle.”
While the company’s revenue is still short of its 2022 peak, Ilan also added that “there is a lot of room to grow,” and is optimistic that the run-up can continue. Indeed, for the coming second quarter, Texas Instruments expects revenue in the range of $5 billion to $5.4 billion, well ahead of current analyst expectations for $4.8 billion.
