Texas Instruments says AI data center demand will stay strong as Q2 revenue jumps 23%

What's Going on With Texas Instruments Stock Thursday? - Texas Instruments (NASDAQ:TXN)

Texas Instruments Says AI Data Center Demand Will Stay Strong 'for the Foreseeable Future' Texas Instruments reported second-quarter revenue of $5.46 billion, topping analysts' estimate of $5.25 billion. Earnings came in at $2.14 per share, ahead of the consensus estimate of $1.92 per share, according to Benzinga Pro. Revenue increased 13% sequentially and 23% from a year earlier, driven by continued strength in the company's Analog and Embedded Processing businesses. Gross profit rose to $3.4 billion, resulting in a 61% gross margin, while operating profit climbed 48% year over year to $2.3 billion. The company generated $2.7 billion in operating cash flow during the quarter and spent $514 million on capital expenditures. It ended the quarter with $7 billion in cash and short-term investments. Industrial, Data Center Drive Growth Industrial revenue increased about 30% from a year earlier and 10% sequentially, supported by broad-based demand. Automotive revenue grew in the mid-teens year over year and in the upper-single digits sequentially. Data center revenue doubled from a year earlier and increased about 20% from the previous quarter. Within its business segments, Analog revenue rose 26% year over year, while Embedded Processing increased 16%. The Other segment declined 2%. Personal electronics revenue was flat from a year earlier but improved sequentially. Communications equipment revenue increased on both an annual and sequential basis. Outlook And CFO Transition Texas Instruments said AI infrastructure demand remains a long-term growth driver, with management expecting strong data center demand to continue as higher-power server architectures require more analog and embedded chips. For the third quarter, Texas Instruments expects revenue of $5.65 billion to $6.15 billion, compared with analysts' estimate of $5.61 billion. The company forecast earnings of $2.23 to $2.57 per share, above the consensus estimate of $2.15 per share. Texas Instruments said it continues to implement price increases amid strong demand while expanding its 300-millimeter manufacturing capacity. The company also announced that Julie Knecht will succeed Rafael Lizardi as chief financial officer following his retirement. Why Texas Instruments Stock Is Falling The pullback appears to stem from profit-taking following the stock's nearly 70% year-to-date rally, rather than disappointment with the company's latest results. Cautious premarket sentiment across the broader market also weighed on investor positioning. Nasdaq futures slipped 0.32%, while S&P 500 futures lost 0.33%, adding pressure to semiconductor stocks. Texas Instruments remains well above its long-term trend levels. However, the recent pullback has left the stock under pressure in the short term as traders lock in gains. Texas Instruments remains under short-term pressure, trading below its 20-day and 50-day moving averages. However, it stays above its 100-day and 200-day averages, keeping the longer-term uptrend intact. The RSI of 48.47 signals neutral momentum. Resistance stands near $315.50, while support is around $276.00. TXN Price Action: Texas Instruments shares were down 5.14% at $279.06 during premarket trading on Thursday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Texas Instruments expects a recovery driven by industry and AI data centers

Texas Instruments expects Q3 revenue of between $5.65bn and $6.15bn, above the consensus of $5.61bn. The manufacturer, which specializes in analog chips used to manage power and convert physical signals into digital data, is indirectly benefiting from the proliferation of data centers dedicated to artificial intelligence, even though it does not make AI processors comparable to Nvidia's. In Q2, the group posted revenue of $5.46bn, up 23% y-o-y and above market expectations of $5.25bn. The results confirm improving demand in industrial markets and the strength of investment by major technology players in the infrastructure needed to develop artificial intelligence.

Texas Instruments Looks Ahead to a Rebound Driven by Industry and AI Data Centers

Texas Instruments expects revenue of between $5.65bn and $6.15bn in the third quarter, above the analyst consensus of $5.61bn. The manufacturer, which specializes in analog chips used to manage power and convert physical signals into digital data, is indirectly benefiting from the proliferation of data centers dedicated to artificial intelligence, even though it does not make AI processors comparable to Nvidia's. In the second quarter, the group posted revenue of $5.46bn, up 23% year over year and above market expectations of $5.25bn. The results confirm improving demand in industrial markets and the momentum in investment by major technology players in the infrastructure needed to develop artificial intelligence.