(Bloomberg) -- Texas Instruments Inc., the biggest maker of analog semiconductors, gave a better-than-anticipated forecast for the current period after demand for industrial and automotive components improved.
Revenue will be $4.17 billion to $4.53 billion in the second quarter, the company said in a statement Wednesday. That handily exceeded the average Wall Street estimate of $4.12 billion, helping send the shares up about 5% in late trading.
The report — one of the first in a wave of tech results — is a promising sign for the chip industry. Texas Instruments has the most extensive product lineup and largest customer list in the semiconductor field, making its earnings an indicator of confidence in demand for everything from factory equipment to home electronics.
Investors have been eagerly awaiting corporate guidance since the Trump administration’s announcement of new tariffs, which are expected to affect a wide swath of electronic products.
The company’s sales grew last quarter for the first time since 2022. When asked whether customers were rushing orders to get ahead of possible tariffs, Chief Executive Officer Haviv Ilan said that, at least for the first quarter, that wasn’t the case. He acknowledged that the company remains cautious about its outlook.
There’s “more and more evidence and signals that across all channels, all geographies, a recovery of the industrial market is here,” he said on a conference call with analysts. “I think this is a real recovery, rather than related to tariffs — at least not for the first quarter.”
The Dallas-based company has been emerging from a slump in demand in some of its major sectors, notably the automotive and industrial markets. It’s also working to preserve its sales from Chinese customers, which generated about 20% of revenue during the first quarter. Texas Instruments faces the threat of tariffs from both the US and China, presenting a puzzle for the chipmaker.
The company has four plants outside of the US, including one in China. It’s been running them at less than full capacity because it’s switching manufacturing to new, larger facilities near its home base in Texas. But that international network could now be “ramped up pretty quickly,” according to Chief Financial Officer Rafael Lizardi. Chips made in one region can easily be tested and packaged in others, he said.
Like peers, Texas Instruments stock has been hurt this year by concern about an escalating trade war between the US and its partners and rivals. The shares were down 19% in 2025 through Wednesday’s close.
One of Texas Instruments’ toughest tasks will be making sure that customers get chips made in locations with the lowest amount of exposure to tariffs, Ilan said. That job is difficult to coordinate, particularly as the electronic components take about three months to manufacture, but he believes that his company has more options than most peers.
Nonetheless, it’s hard to predict how the the cross-border tariff approaches will evolve, he said. “It’s a very, very dynamic environment,” he said. “There is a potential impact on our customers and our suppliers and also on our revenue. So it is unclear and it will evolve.”
Profit will be $1.21 to $1.47 a share in the second quarter, the company said, versus an estimate of $1.21 a share. First-quarter revenue rose 11% to $4.07 billion, with profit coming in at $1.28 a share. That performance compared with average estimates of $3.91 billion for sales and $1.07 a share for earnings.
Texas Instruments leads the market for analog chips, which convert real-world things like sound and pressure into electronic signals. The company is expanding its factory network in Texas and shifting to a more advanced type of production. That investment, which is weighing on short-term profitability, is partially aimed at lowering costs to make it better able to fend off growing competition from new Chinese rivals.
Companies in that country are rapidly expanding their manufacturing capabilities for the type of chips made by Texas Instruments and companies such as Analog Devices Inc. They’re concentrating on that field because US export curbs limit their ability to go after higher-end processors.
Ilan said he believes it remains possible to compete in China, which acts as a good training ground for his company. He pointed to the intensity of its local competition and the way that companies there are moving quickly.