Chip industry "barometer" Texas Instruments surges more than 11% after hours

Glonghui, April 23｜After the US stock market closed on Wednesday, US chip manufacturer Texas Instruments saw its stock price surge by over 11%. News reports indicate that the company’s Q1 revenue exceeded expectations, and thanks to a surge in data center and industrial equipment spending, its performance guidance also delivered a surprise. The latest financial report shows that Texas Instruments’ Q1 revenue increased by 19% year-on-year to $4.83 billion, surpassing analysts’ average estimate of $4.52 billion. Operating profit was $1.808 billion, up 37% year-on-year; net profit was $1.545 billion, a 31% year-on-year increase; earnings per share grew by 31% year-on-year to $1.68, beating analysts’ average forecast of $1.38.Texas Instruments CEO Haviv Ilan said on an analyst call that revenue increased 9% quarter-on-quarter and 19% year-on-year, with growth mainly driven by the industrial and data center markets. He pointed out that the recovery in demand for industrial components is spread across all regions and industries. While the company’s revenue is still below previous peaks, this has boosted optimism about the sustainability of growth momentum. Meanwhile, Texas Instruments’ Q2 guidance also significantly beat market expectations. The company expects second-quarter revenue to be between $5 billion and $5.4 billion, while analysts’ average estimate was $4.85 billion; second-quarter earnings per share are forecast to be $1.77 to $2.05, with analysts’ average estimate at $1.57.