Markets
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Luke Kawa

Texas Instruments soars as Q1 guidance exceeds estimates and CEO touts “a lot of room to go” on industrial recovery

Texas Instruments soared in after-hours trading Tuesday as better-than-expected Q1 guidance outweighed a mediocre set of Q4 results.

The chipmaker sees sales in the current quarter ranging between $4.32 billion and $4.62 billion, the midpoint of which is slightly north of the consensus estimate for $4.42 billion. The outlook for earnings per share of $1.22 to $1.48 also compares favorably to Wall Street’s call for $1.26.

For Q4, sales of $4.42 billion were a tad below the consensus call for $4.43 billion, while earnings per share of $1.27 came in $0.03 light of the Street’s view. However, earnings per share included a $0.06 hit that was not incorporated into the company’s guidance, Texas Instruments said.

Managing expectations has not been Texas Instruments’ strong suit as of late: the stock sank after the firm reported Q3 results because Q4 guidance was weak. And during the conference call that followed Q2 earnings, three separate analysts remarked that CEO Haviv Ilan’s “tone” wasn’t too upbeat despite better-than-expected financials and decent guidance.

This time, the outlook and commentary were all sunshine and rainbows.

“The first-quarter guidance is significantly stronger than seasonal,” remarked Deutsche Bank analyst Ross Seymore. “And if my math is right, it seems like it’s the first time you’ve guided up sequentially since right after the financial crisis 15 years ago, roughly.”

Ilan credited this to a persistent recovery in industrial demand, which accounts for about one-third of the company’s sales.

“Remember that on the industrial market, we still have a lot of room to go when you think about the previous peaks,” he said. “So, if you will, the compare, it’s still easy for industrial to continue to recover.”

And then, of course, there’s AI. Data center revenues are a small but briskly growing part of TI’s business, accounting for 9% of sales for the full year while surging roughly 70% year on year in Q4.

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Tasha Matsumoto
1h
Stocks rebound as the price of oil retreats

Every sector traded higher, with tech leading gains on increased optimism that tankers will be able to pass through the Strait of Hormuz.

Aberdeen Angus Bull
Luke Kawa
2h
Nvidia briefly spikes after Jensen Huang sees at least $1 trillion in AI chip sales through 2027

The stock then gave it all up and then some.

Jensen Huang at 2026 GTC in San Jose
markets
Luke Kawa

Oil’s retreat propels US stocks higher

Front-month West Texas Intermediate futures are down more than 4%, while Brent futures are off more than 2% as of 1:25 p.m. ET as traders glom on to some optimistic signs about the flow of oil through the all-important Strait of Hormuz:

  • A Pakistani-owned tanker passed through the strait this weekend while broadcasting its signal, per Reuters, “indicating ‌that some countries are able to negotiate safe passage for their vessels despite the U.S.-Israeli war on Iran.”

  • US President Donald Trump said that some “fairly local” countries would soon be helping ships traverse the strait (while having added that other countries are “not enthusiastic” about the prospect of participating).

The SPDR S&P 500 ETF and Invesco QQQ Trust are both up over 1% amid oil’s retreat.

That being said, the news flow is far from universally positive.

Reuters reports that the UAE’s crude output has been cut in half since the Mideast conflict started; Bloomberg says Kuwait’s production has suffered a similar decline.

Trump urges allies to help reopen Strait of Hormuz as tanker traffic nearly vanishes

Trump urges allies to help reopen Strait of Hormuz as tanker traffic nearly vanishes

  • A Pakistani-owned tanker passed through the strait this weekend while broadcasting its signal, per Reuters, “indicating ‌that some countries are able to negotiate safe passage for their vessels despite the U.S.-Israeli war on Iran.”

  • US President Donald Trump said that some “fairly local” countries would soon be helping ships traverse the strait (while having added that other countries are “not enthusiastic” about the prospect of participating).

The SPDR S&P 500 ETF and Invesco QQQ Trust are both up over 1% amid oil’s retreat.

That being said, the news flow is far from universally positive.

Reuters reports that the UAE’s crude output has been cut in half since the Mideast conflict started; Bloomberg says Kuwait’s production has suffered a similar decline.

markets
Matt Phillips

Sandisk and memory stocks rip ahead of Nvidia CEO’s speech

Memory stocks such as Sandisk, Micron, and disk drive makers Western Digital and Seagate sprinted ahead Monday, as this week’s big AI conference for tech bellwether Nvidia gets underway with a speech from the CEO slated for this afternoon.

As Luke Kawa pointed out earlier, CEO Jensen Huang’s speechifying at high-profile company announcements or industry events hasn’t always been a good thing for Nvidia shares. (The chip designer is holding its GPU Technology Conference, or GTC, this week.)

But Huang’s pronouncements have, at times, been pretty dang helpful for share prices of some companies in the orbit of the AI gods. Perhaps foremost among them are the memory stocks that have blasted toward the top of the S&P 500 in terms of price performance in recent years.

Case in point: the nearly 30% gain that Sandisk posted on January 6, the day after Huang’s keynote speech at the Consumer Electronics Show in Las Vegas, in which he spotlighted memory as a key bottleneck constraining the AI build-out. (Fellow memory plays Western Digital, Seagate Technology Holdings, and Micron also posted double-digit gains that day.)

Memory stocks have been the highest-profile outlet for bullish AI industry impulses this year, and notable comments from Huang could put the wind back in their sails after they had slowed in recent weeks.

Of course, there are also other things happening in the sector, such as Micron’s announcement Sunday that it completed an acquisition of a new manufacturing site in Taiwan.

Either way, memory stocks are pushing higher after having exhaled a bit lately.

What Wall Street’s looking for from Jensen Huang’s keynote GTC address

What Wall Street’s looking for from Jensen Huang’s keynote GTC address

But Huang’s pronouncements have, at times, been pretty dang helpful for share prices of some companies in the orbit of the AI gods. Perhaps foremost among them are the memory stocks that have blasted toward the top of the S&P 500 in terms of price performance in recent years.

Case in point: the nearly 30% gain that Sandisk posted on January 6, the day after Huang’s keynote speech at the Consumer Electronics Show in Las Vegas, in which he spotlighted memory as a key bottleneck constraining the AI build-out. (Fellow memory plays Western Digital, Seagate Technology Holdings, and Micron also posted double-digit gains that day.)

Memory stocks have been the highest-profile outlet for bullish AI industry impulses this year, and notable comments from Huang could put the wind back in their sails after they had slowed in recent weeks.

Of course, there are also other things happening in the sector, such as Micron’s announcement Sunday that it completed an acquisition of a new manufacturing site in Taiwan.

Either way, memory stocks are pushing higher after having exhaled a bit lately.

Luke Kawa
7h
What Wall Street’s looking for from Jensen Huang’s keynote GTC address

GTC may stand for GPU Technology Conference, but investors are looking for Nvidia to go beyond GPUs.

Nvidia Holds Its GTC: Artificial Intelligence Conference

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