Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide, including the United States, China, Asia, Europe, the Middle East, Africa, and Japan. It operates through two segments: Analog and Embedded Processing. The Analog segment provides power management and signal chain products, while the Embedded Processing segment offers microcontrollers, processors, wireless connectivity, radar, and DLP products, as well as calculators and application-specific integrated circuits. The company sells through direct sales, distributors, and its website. Founded in 1930, it is headquartered in Dallas, Texas.
Texas Instruments Raises Quarterly Dividend 7% to $1.52 Per Share
Texas Instruments will raise its quarterly cash dividend 7%, from $1.42 per share to $1.52, or $6.08 annualized, marking 23 consecutive years of dividend increases. The higher dividend is payable November 10, 2026, to stockholders of record on October 30, 2026, contingent upon formal declaration by the board of directors at its regular meeting in October. The company said the increase is consistent with its long-term objective of providing a sustainable and growing dividend and reflects its continued commitment to return all free cash flow to its owners over time. Texas Instruments designs, manufactures and sells analog and embedded processing chips for markets including industrial, automotive, data center, personal electronics and communications equipment.
Microchip's SST Unit Wins AnalogAI as memBrain SAGE Customer
Microchip Technology said its Silicon Storage Technology subsidiary has secured AnalogAI as a customer for its memBrain SAGE intellectual property, a design win that expands the company's exposure to edge AI and neuromorphic computing. The technology combines analog compute-in-memory with ultra-low-power operation to support real-time AI inference and learning directly on edge devices, and AnalogAI plans to use it in processors targeting humanoid robots, drones and vehicles. The win builds on Microchip's technology-licensing momentum, with licensing revenues rising to $42.6 million in the first quarter of fiscal 2027 from $33 million a year earlier, and licensee revenues growing to $163.8 million in fiscal 2026 from $131.1 million in fiscal 2025. Microchip faces intensifying competition in edge AI from NXP Semiconductors, which said AI-enabled processors are expected to represent 15% of industrial and IoT processor revenues in 2026, more than doubling from 2025, and from Texas Instruments, which cited strong demand across robotics, industrial automation and energy infrastructure. Microchip shares have risen 9.2% year to date, trailing the broader Zacks Computer and Technology sector's 16.7% gain, and the stock trades at a forward 12-month price/earnings of 17.31X versus the sector's 20.32X. The Zacks Consensus Estimate for Microchip's earnings stands at 92 cents per share, up a couple of cents over the past 30 days and implying 162.86% growth.
Texas Instruments Data Center Sales Double as AI Spending Lifts Growth
Texas Instruments' data center revenues doubled year over year in the second quarter of 2026 and rose about 20% sequentially, making data center one of the company's three strongest growth markets alongside industrial and automotive. CEO Haviv Ilan said on the earnings call that the company expects to outgrow the data center market in 2026, supported by research and development investments and its ability to supply customers, and management said it has clean-room capacity available and plans to equip facilities as needed. The industry's move toward 800-volt architectures, which can require several power-conversion stages, is expected to increase the analog and embedded content used in data centers. Rival Analog Devices posted third-quarter fiscal 2026 revenues of $4.02 billion, up 40% year over year, with communications revenues surging 84% on data center demand, while ON Semiconductor said its AI data center revenues grew more than 30% sequentially and more than doubled year over year in the second quarter of 2026 as total revenues rose 9.2% to $1.6 billion. ON Semiconductor management now expects 2026 revenues to more than double year over year and AI data center SiC revenues to grow nearly 60% in 2026. Texas Instruments shares have rallied 51.9% year to date, and the Zacks Consensus Estimate implies 2026 and 2027 earnings increases of 55.1% and 16.8%, respectively.
Texas Instruments Begins Customer Price Increases After Flat First Half
Texas Instruments has started implementing price increases, negotiated directly with customers, after keeping prices broadly stable through the first half of 2026, with the contribution expected to begin in the third quarter and continue into the fourth quarter and beyond. Management said on its second-quarter 2026 earnings call that only a small pricing contribution is expected to third-quarter growth, with most of the sequential revenue increase coming from higher unit volumes. Texas Instruments entered the cycle from strength, with second-quarter revenues up 23% year over year to $5.46 billion, operating profit up 47.8% to $2.31 billion and analog revenues up 26%. Rival Analog Devices raised global prices by an average of 15% in February 2026, a move expected to add about 50 basis points of sequential revenue growth in both its fiscal third and fourth quarters, after fiscal third-quarter revenues rose 40% year over year to $4.02 billion and adjusted gross margin expanded 330 basis points to 72.5%. ON Semiconductor raised prices on selected components in April 2026, focusing on power, industrial and data center segments, after second-quarter 2026 revenues rose 9.2% year over year to $1.604 billion and non-GAAP gross margin expanded 170 basis points year over year and 80 basis points sequentially to 39.3%.
Xingyun Technology signs 921.6 million yuan computing power deal; Texas Instruments raises prices for third time this year
Xingyun Technology announced on the evening of September 3 that it has signed a Computing Power Leasing Agreement with a VD client to provide computing power resource leasing services for a term of five years, with a total tax-inclusive amount of 921.6 million yuan. The VD client is an A-share listed company with sound contract performance capability. The company said the agreement's performance is expected to have a certain impact on future operating results and does not create reliance on the counterparty. In addition, analog chip giant Texas Instruments circulated a price adjustment notice on September 1, implementing a new round of price increases for multiple products. This is its third round of price hikes this year, following increases in March and May. STMicroelectronics, Analog Devices, Maxscend Microelectronics and several other manufacturers have also adjusted prices. Driven by AI, the semiconductor industry has entered a cycle of rising volumes and prices. WSTS forecasts the global analog chip market will reach 86.519 billion US dollars in 2025, up 8.7 percent year on year. In the first half of the year, A-share semiconductor companies posted combined net profit attributable to the parent of 160.506 billion yuan, up 607.2 percent year on year, with seven stocks including Longsys and Puya Semiconductor growing more than 1,000 percent.
Vicor's Backlog Surges 145% as Demand Outpaces Capacity
Vicor is riding a wave of strong demand across high-performance computing, automatic test equipment, industrial, and aerospace and defense markets, with its backlog reaching approximately $380 million at the end of the second quarter of 2026, up 26% sequentially and 145% year over year. The company's book-to-bill remained above 1, and management highlighted ATE as a key growth driver, with business from major ATE customers now a large multiple of historical levels due to AI infrastructure buildout. Vicor expects nearly 10% sequential revenue growth in the third quarter and more than $600 million in revenues for 2026, supported by planned double-digit sequential growth in Advanced Products. However, lead times have increased as demand exceeds capacity, prompting some customers to order earlier, and Vicor plans to build a second fab to support future growth. The company faces tough competition from Analog Devices, whose third-quarter fiscal 2026 revenues jumped 40% year over year, and Texas Instruments, whose data-center revenues doubled in the second quarter of 2026, both challenging Vicor's ability to capture rising demand.
Spirit Electronics Adds TI and Microchip Space-Grade Components to Online Store
Spirit Electronics announced that space-grade and high-reliability components from Texas Instruments and Microchip Technology are now available directly through its online store at spiritelectronics.com. The announcement coincides with the SmallSat Conference in Salt Lake City, where Spirit supports the growing demand for radiation-tolerant, orbit-qualified electronics for satellite and space system development. The release highlights the availability of mission-critical TI and Microchip devices, including radiation-hardened power solutions, space-grade microcontrollers, high-reliability analog components, precision timing devices, and other integrated circuits designed to withstand the extreme thermal, electrical, and radiation environments of Low Earth Orbit, Medium Earth Orbit, Geostationary Orbit, Highly Elliptical Orbit and Deep Space exploration missions. Spirit Electronics will continue expanding space-grade inventory listings and online purchasing options throughout 2026 to support commercial satellite manufacturers, government programs, and academic missions requiring U.S.-sourced high-reliability components.
Analog chip stocks post strong Q2, Texas Instruments beats but shares fall
Analog semiconductor stocks delivered a strong second quarter, with the 14 companies tracked beating revenue consensus by 1.8% and guiding next quarter 4.9% above expectations. Texas Instruments reported revenue of $5.46 billion, up 22.8% year over year and 3.8% above estimates, yet its stock fell 8.4% to $269.50 as investor expectations ran higher. Monolithic Power Systems was the quarter's standout, with revenue of $980.6 million, up 47.6% year over year and 8.6% above estimates, though its shares traded sideways at $1,312. Himax posted the slowest growth at 5.9% to $227.4 million, while Microchip Technology and Skyworks Solutions also beat revenue expectations.
GE Appliances picks Texas Instruments chips for new Louisville plant
GE Appliances, a Haier company, has chosen U.S.-manufactured Texas Instruments microcontrollers, Wi-Fi solutions, and analog components to supply around one-third of the semiconductors for its new Louisville laundry plant, nearly doubling its chip spending with TI. The long-term supply relationship underscores how TI's U.S. manufacturing footprint and broad analog and embedded portfolio are becoming increasingly important for appliance makers seeking reliable, domestically sourced components for smarter, connected products. The deal highlights the value of TI's domestic fabs and broad portfolio, but on its own it does not materially change the biggest near-term swing factor: how well TI fills its expanding 300mm capacity without pressuring margins. Among recent announcements, the December 2024 CHIPS Act funding stands out alongside the GE Appliances deal, with up to US$1.6 billion of government support for TI's new 300mm fabs in Sherman and Lehi directly tying into the same theme of a larger, U.S.-based manufacturing footprint that could help win more domestically sourced business, while also amplifying the risk of underutilized capacity if demand or pricing soften.
Texas Instruments Returns $5.8 Billion to Shareholders
Texas Instruments returned $5.8 billion to shareholders over the past 12 months through dividends and share repurchases, as improving business momentum translated into stronger cash generation. The company generated $6.5 billion of free cash flow over the trailing 12 months, up sharply from $1.8 billion a year earlier, with free cash flow representing 33.6% of revenues compared with 10.6% in the prior-year period. Second-quarter revenues jumped 23% year over year to $5.46 billion, while operating profit surged 48%. Capital expenditures are expected to fall to between $2 billion and $3 billion in 2026, about a 34% to 56% reduction from the 2025 level of approximately $4.55 billion, which could significantly improve free cash flow and strengthen the company's ability to return more capital to shareholders. The Zacks Consensus Estimate for Texas Instruments' 2026 revenues is pegged at $21.7 billion, indicating a 22.7% year-over-year increase.
Zacks Adds Five Stocks to Strong Buy List Including ASM International and Texas Instruments
Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on August 6th. ASM International NV saw its next-year earnings consensus estimate rise 9.5% over the last 60 days. Northern Trust Corporation's current-year earnings estimate increased 8.3%. Texas Instruments Incorporated's current-year estimate rose 9%. CTO Realty Growth Incorporated's current-year estimate climbed 5.2%. ING Group NV's current-year estimate advanced 6.5%.
Texas Instruments to supply semiconductors for GE Appliances' next connected devices
GE Appliances announced plans to integrate Texas Instruments semiconductors into its next generation of connected appliances manufactured in the U.S. Texas Instruments will supply microcontrollers and connectivity solutions that sit at the core of GE Appliances' smart home product lineup. The collaboration focuses on U.S.-based production and reflects growing demand for reliable IoT hardware in large-scale consumer products. Texas Instruments stock recently closed at $283.58 and is up 59.7% year to date.
Texas Instruments Climbs as Second-Quarter Guidance Tops Market Expectations
Texas Instruments shares rose after the company issued second-quarter 2026 guidance above market expectations, signaling improving demand trends, particularly in industrial and data center end markets. Diamond Hill Capital's Large Cap Strategy highlighted the move in its second-quarter 2026 investor letter, noting the semiconductor and processor producer's upbeat outlook. The strategy returned 3.42% net of fees for the quarter, trailing the Russell 1000 Value Index's 13.87% gain, with performance hurt by limited exposure to AI-related capital spending and software holdings pressured by AI disruption concerns. Texas Instruments closed at $275.74 per share on July 31, 2026, with a one-month return of negative 11.14% and a 52-week gain of 46.20%, giving it a market capitalization of $251.82 billion.
Texas Instruments Stock Drops 16% From High Despite Strong Q2 Results
Texas Instruments shares are down about 16% from their 52-week high of $334 after second-quarter earnings failed to lift the stock, as investors focused on third-quarter guidance that came in below consensus. Revenue grew 23% year over year to $5.5 billion and earnings per share jumped 52% to $2.14, driven by broad-based demand across analog and embedded processing. Management guided for third-quarter revenue between $5.65 billion and $6.15 billion, below the $5.9 billion analysts expected, partly because price increases will not meaningfully impact revenue until the fourth quarter. The company highlighted that data center revenue doubled year over year and increased 20% sequentially, with CEO Haviv Ilan noting more tailwind ahead. Texas Instruments offers a 2.1% dividend yield backed by 22 consecutive years of increases and analysts project around 23% annual earnings growth, presenting a rare combination of income and high growth potential.
Arete Research Upgrades Texas Instruments to Buy, Lifts Price Target to $405 on AI Data Center Demand
Arete Research upgraded Texas Instruments to Buy from Neutral and raised its price target to $405 from $303, citing surging AI data center demand that is expected to cause three years of analog semiconductor shortages. The upgrade follows a strong quarter in which revenue rose 23% year-over-year to $5.46 billion and EPS jumped 52% to $2.14, beating consensus estimates. The firm projects Texas Instruments' revenue will reach approximately $34 billion with earnings of $17 per share by fiscal 2028, driven by capacity advantages that should yield significant market share gains. Data center income doubled, fueled by high-voltage gallium-nitride power devices and other analog content needed for denser GPU clusters, while a six-year, roughly $24 billion fab expansion nears completion, with 2026 capex projected at $2 billion to $3 billion, down from $4.55 billion in 2025, and free cash flow per share expected to exceed $8 in 2026 compared to $3.23 in 2025. The stock has climbed roughly 60% in 2026 and trades near 35 times forward earnings, a multiple that leaves little margin of safety despite the bullish thesis.
ExxonMobil, UnitedHealth, and Texas Instruments Surge Past the Market in 2026
Three dividend-paying stocks have vastly outperformed the broader market this year. ExxonMobil shares are up around 29% in 2026, UnitedHealth Group has gained 28%, and Texas Instruments has surged approximately 62%, all well ahead of the S&P 500's over 8% rise. ExxonMobil trades at 14 times forward earnings and yields 2.7%, while UnitedHealth yields 2.2% and has raised its payout by 60% over five years. Texas Instruments posted quarterly revenue of $5.5 billion, up 23% year over year, with net income rising 53% to just under $2 billion, driven by strong demand from data centers investing in artificial intelligence.
Tech Stocks Slide as Semiconductor Index Drops 6% Despite Strong Earnings
Technology stocks are under pressure as the MSCI World Semiconductor Index fell 6% in July, with investors rotating away from chipmakers despite strong earnings. EPFR Global analysts noted the long-short ratio on Nasdaq 100 futures dropped 63% over the past year to a 17-year low on July 14, signaling a shift out of technology stocks. STMicroelectronics tumbled 18% after its outlook missed forecasts, while Texas Instruments declined 3% even with an upbeat outlook. Software stocks fared better, with Dassault Systemes rising on in-line results and SAP advancing after cloud revenue matched expectations. JPMorgan strategists recommended buying a call spread on the Magnificent Seven basket, citing heavily reduced positioning that could support the group if earnings hold up.
Texas Instruments Could Be 33% Undervalued After Earnings Beat
Texas Instruments reported second quarter 2026 results with sales of US$5,463 million and net income of US$1,980 million, beating expectations and raising guidance. The stock has returned 65.72% year to date and 62.38% over one year, though a recent 11.46% decline over 30 days suggests short-term momentum has cooled. A popular narrative on Simply Wall St estimates a fair value of $435.69, implying the stock is 32.5% undervalued relative to the last close of $294.19, driven by expectations that a multiyear capacity-expansion cycle will structurally improve cost efficiency and restore free cash flow. However, the current price-to-earnings ratio of 50.2x sits above the peer average of 43.8x and a fair ratio of 44x, indicating less room for error if expectations soften.
Zacks Names Five Semiconductor Stocks Poised for AI-Driven Growth
Zacks Investment Research highlights five semiconductor stocks with strong growth potential as AI enthusiasm continues to power the sector. The Philadelphia Semiconductor Index has rallied 75.2% year to date, and global semiconductor sales hit $298.5 billion in the first quarter, a 25% sequential increase. Micron Technology and NVIDIA carry a Zacks Rank of 1, or Strong Buy, while Intel, Applied Materials, and Texas Instruments hold a Zacks Rank of 2, or Buy. Micron and Intel each have an expected earnings growth rate of more than 100% for the current year, NVIDIA is projected at 90.6%, Texas Instruments at 40.6%, and Applied Materials at 28.9%. The firm notes that the AI boom appears to be in its early stages and the recent market pullback looks like a temporary correction.
Tesla and Alphabet slide premarket after earnings and capex updates
Tesla and Alphabet led premarket decliners after Tesla missed second-quarter earnings and Alphabet raised its capital expenditure outlook. Tesla shares fell nearly 6% as free cash flow turned negative and margins came under pressure. Alphabet dropped 4.5% after the Google parent increased its 2026 capex guidance to between $195 billion and $205 billion, up from a previous forecast of as much as $190 billion, to bolster artificial intelligence capabilities. Lockheed Martin popped 6% after beating second-quarter expectations with earnings of $7.94 per share on revenue of $20.06 billion, and it hiked its full-year earnings outlook. IBM reported second-quarter profit and revenue below analyst expectations, following last week's preliminary results that triggered its biggest-ever sell-off. Texas Instruments beat estimates with earnings of $2.14 per share and revenue of $5.46 billion, but shares fell 3.2%. Eli Lilly said it will seek approval for a next-generation obesity drug in the first quarter of 2027 after late-stage trials showed adults with obesity and cardiovascular disease lost up to 22.6% of their weight at 80 weeks, and its shares dipped over 1%. Comcast edged higher after an earnings beat and strength at NBCUniversal ahead of its planned spinoff.
Alphabet Posts 216% Earnings Beat but Shares Dip on Negative Free Cash Flow
Alphabet reported a massive second-quarter earnings beat after the market close on Wednesday, posting earnings of $9.11 per share, a 216% positive surprise over the consensus estimate of $2.87. Revenues, after subtracting traffic acquisition costs, came in at $103.62 billion, above the $101.28 billion forecast. Cloud revenue grew 82%, search revenue reached $63.2 billion with AI driving a 24.7% increase in query engagements, and YouTube ads hit $11 billion for the first time in a quarter. However, the company recorded its first quarter of negative free cash flow at negative $5.8 billion on capital expenditures of $44 billion, sending shares down 1% in late trading. Tesla missed bottom-line expectations with earnings of $0.33 per share versus the $0.50 estimate, despite revenues rising 26% year over year to $28.26 billion, and its shares fell 3% after hours. IBM met earnings estimates at $2.93 per share and slightly beat on revenues with $17.2 billion, while ServiceNow posted a 19% earnings beat with $0.97 per share and raised its full-year subscriber revenue outlook, lifting shares 3.66%. Texas Instruments exceeded forecasts with earnings of $2.14 per share on revenues of $5.46 billion, up 52% and 23% year over year respectively, and shares added 1% in late trading.
Texas Instruments' Q3 Revenue Outlook Tops Market Estimates
US semiconductor giant Texas Instruments released a third-quarter revenue outlook of 5.65 billion to 6.15 billion dollars, exceeding the average analyst estimate of 5.61 billion dollars compiled by LSEG. The company indicated a recovery in industrial semiconductor demand, along with strengthening momentum for semiconductors used in AI data centers. Second-quarter revenue rose 23 percent year-on-year to 5.46 billion dollars, beating the forecast of 5.25 billion dollars. While Texas Instruments does not make high-performance AI processors like Nvidia, it produces analog semiconductors for power management and converting real-world inputs into digital signals.
Texas Instruments' board declared a quarterly cash dividend of US$1.42 per share, payable on August 11, 2026, to shareholders of record as of July 31, 2026. The announcement comes as investors focus on the company's upcoming second-quarter results, with analysts expecting revenue of about US$5.23 billion and earnings of US$1.91 per share, driven by strong AI-related demand across its end markets. The dividend declaration itself does not materially change the investment narrative, but it sharpens attention on how Texas Instruments balances shareholder payouts with heavy manufacturing and technology investment. Some analysts project revenue could reach US$26.4 billion and earnings US$10.4 billion by 2029, while more cautious estimates assume annual revenue growth of about 8.9 percent and earnings of roughly US$7.6 billion by 2029.
Zacks Picks Four Cash-Rich AI Chip Stocks to Buy Amid Market Uncertainty
Zacks Investment Research highlights Micron Technology, Texas Instruments, NVIDIA, and Broadcom as top AI chip stocks with strong cash generation to navigate market volatility. Micron Technology generated adjusted free cash flow of $18.3 billion in its fiscal third quarter and $29.9 billion over the trailing 12 months, driven by surging demand for high-bandwidth memory. Texas Instruments produced $1.4 billion of free cash flow in the first quarter of 2026 and $4.4 billion over the trailing 12 months, supported by its diversified analog and embedded portfolio. NVIDIA reported free cash flow of $48.6 billion in its fiscal first quarter and approximately $119 billion over the trailing 12 months, fueled by explosive growth in AI computing. Broadcom posted free cash flow of $10.3 billion in its fiscal second quarter and approximately $32.8 billion over the trailing 12 months, benefiting from custom AI accelerators and networking chips. All four stocks carry a Zacks Rank of #1 (Strong Buy) or #2 (Buy) and a Growth Score of A or B.
Tech earnings, Middle East tensions, and ECB decision set to drive markets this week
Investors face a busy week shaped by major technology earnings, geopolitical risks, and central bank decisions. Alphabet reports quarterly results on Wednesday, with its AI capital spending outlook in focus, while Intel and Texas Instruments also release earnings, offering insight into semiconductor demand. Renewed US-Iran military action has pushed Brent crude back above $90 a barrel, raising inflation concerns as the fragile ceasefire deteriorates and threatens shipping through the Strait of Hormuz. The European Central Bank is expected to hold rates steady, but markets will watch for guidance on persistent inflation, which remains near 3% in the euro area, and ING analysts warn of a possible surprise hike. Additionally, Friday’s US PMI data will provide a fresh economic snapshot, and SpaceX aims to launch its 13th Starship test flight as early as Thursday after a previous attempt was scrubbed.
Dow closes down 307 points as investors await second-quarter earnings and watch the Middle East
US stocks closed sharply lower on Monday, with investors holding back ahead of second-quarter earnings from major technology companies due this week and closely monitoring developments in the Middle East. The Dow Jones Industrial Average ended at 51,839.26, down 307.16 points, or 0.59 percent. The S&P 500 closed at 7,443.28, down 14.41 points, or 0.19 percent. The Nasdaq Composite finished at 25,508.07, down 12.17 points, or 0.05 percent. The Nasdaq fell less than the other indices as chip stocks partially recovered from last week's sell-off, while growth sectors such as communication services and technology, along with energy stocks, all advanced. Second-quarter earnings season picks up steam this week, with heavyweights like Alphabet, Tesla, and Intel scheduled to report, offering a clearer picture of the financial health of US businesses. Data from LSEG indicates the market expects S&P 500 second-quarter profits to grow 26 percent from a year earlier, up from an earlier estimate of 23.7 percent. Investors are also closely watching results from chipmakers Intel and Texas Instruments for positive signals, after the Philadelphia Semiconductor Index closed Friday more than 20 percent below its record high from late June, confirming a bear market. Meanwhile, the Iran-backed Houthi group in Yemen announced overnight that it would impose a naval blockade on Saudi Arabia, opening a new front in the Iran war and expanding risks to energy supplies and global trade beyond the Persian Gulf. However, Iranian officials told Reuters that mediators have put forward proposals to de-escalate the conflict, including a 10-day ceasefire to pave the way for reviving a temporary agreement reached last June.
Four Legacy Tech Stocks Deliver Dividend Growth Backed by AI Cash Flow
Four US-listed technology companies are combining decades-long dividend growth with exposure to artificial intelligence infrastructure spending. Texas Instruments, which has not cut its dividend in 27 years, recently raised its quarterly payout to $1.42 per share and trades at $301.19 with a 1.86% yield. Qualcomm offers a 6.83% free cash flow yield and a 16-year streak of annual increases, with its quarterly dividend rising to $0.92. Cisco Systems has raised its dividend for over 14 consecutive years, most recently to $0.42 per share, while AI infrastructure orders year to date reached $5.3 billion. Broadcom generated $10.262 billion in quarterly free cash flow as AI semiconductor revenue surged 143% year over year to $10.8 billion, supporting a 10.2% dividend increase to $0.65 per share.
Texas Instruments Likely to Beat Q2 Earnings Estimates
Texas Instruments is likely to beat earnings estimates when it reports second-quarter 2026 results on July 22. The company expects revenue between $5 billion and $5.4 billion, with the Zacks Consensus Estimate at $5.23 billion, implying 17.5% growth from the prior year. Earnings per share are forecast between $1.77 and $2.05, and the consensus estimate of $1.91 suggests a 35.5% increase. A positive Earnings ESP of plus 2.66% and a Zacks Rank of 3 support the likelihood of a beat. Strong demand for analog and embedded chips, particularly from data centers where revenues surged roughly 90% year over year in the first quarter, is expected to have driven performance, though geopolitical tensions and U.S.-China trade issues remain headwinds.
Analog chip stocks poised for AI-driven gains, says Bank of America
Analog chipmakers are emerging as beneficiaries of the artificial intelligence infrastructure boom, according to Bank of America. The firm expects most AI-related sales across the analog chip group to grow 50% to more than 100% this year, driven by massive power management needs in AI data centers. Analyst Vivek Arya noted that after a prolonged inventory correction, customers are beginning to restock analog hardware as industrial demand improves, creating a positive backdrop for the second half of 2026. Bank of America highlighted Analog Devices, ON Semiconductor, Texas Instruments, and Allegro MicroSystems as key names poised for further gains.
AMD vs. Texas Instruments: Which Semiconductor Stock Is a Better Buy in 2026?
Advanced Micro Devices and Texas Instruments offer contrasting semiconductor investments, with AMD focusing on high-growth AI and data center processors while Texas Instruments provides a diversified analog chip portfolio. In fiscal 2025, AMD revenue surged 34.3% to nearly $34.6 billion with net income of approximately $4.3 billion, while Texas Instruments revenue rose 13% to roughly $17.7 billion with net income of about $5.0 billion. AMD trades at a forward P/E of 69.5x and P/S ratio of 24.4x, compared to Texas Instruments' 38.3x and 15.2x, respectively. The analysis notes AMD's higher growth potential but rich valuation and customer concentration risk, while Texas Instruments offers steadier returns, a dividend, and in-house manufacturing. The author concludes that an ETF investing broadly in tech companies may be preferable to picking either stock.
Zacks highlights five top-ranked semiconductor stocks for July 2026
Zacks Investment Research featured five semiconductor stocks as top picks for July 2026, citing strong AI-driven demand and favorable growth metrics. The highlighted companies are Microchip Technology, Semtech, Texas Instruments, Amtech Systems, and Vishay Intertechnology, each carrying a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B. Global semiconductor sales reached a record 120.6 billion dollars in May 2026, up 104.1 percent year over year, marking the fifteenth consecutive month of growth. The report notes that AI infrastructure spending is benefiting firms across compute, networking, memory, advanced packaging, and power management segments. Specific growth drivers include Microchip Technology's PCIe Gen6 switches, Semtech's 800G and 1.6T connectivity products, Texas Instruments' analog and power management chips, Vishay Intertechnology's power components, and Amtech Systems' advanced packaging equipment.
Cantor Fitzgerald lifts Texas Instruments price target to $340
Cantor Fitzgerald raised its price target on Texas Instruments to $340 from $300 while maintaining a Neutral rating. The brokerage sees the AI infrastructure buildout as a generational semiconductor cycle that could push industry revenue to roughly $3 trillion by 2029 and over $3.5 trillion by 2030. Texas Instruments reported first-quarter 2026 revenue up 19% year-over-year to $4.8 billion and earnings per share up 31% to $1.68, driven by data center and industrial demand. The company guided for second-quarter revenue of $5 billion to $5.4 billion and earnings per share of $1.77 to $2.05.
Microchip Gains From Rising Mixed-Signal MCU Demand
Microchip Technology is well positioned to benefit from growing demand for mixed-signal microcontrollers, which account for nearly 50% of fiscal 2026 revenues. The company is seeing renewed demand across industrial automation, automotive, aerospace and defense, communications, and AI-enabled data centers, with management noting that innovation-driven growth has resumed as customers restart new product development after working through excess inventories. Microchip's Total System Solutions strategy bundles MCUs with analog ICs, power management, connectivity, timing, security, and FPGA products, increasing content per design win. Bookings have strengthened, with April representing the strongest booking month in nearly four years and book-to-bill remaining above one. However, the company faces significant competition from Texas Instruments, which is expanding its embedded processing portfolio with integrated analog peripherals and wireless MCU capabilities, and from Analog Devices, which combines high-performance mixed-signal technologies with embedded intelligence for industrial and automotive applications.
Texas Instruments and Impinj Stocks Rise as Semiconductor Sector Rebounds
Texas Instruments and Impinj shares rose 3.8% and 4% respectively as the semiconductor sector rebounded from last week's sharp selloff, buoyed by bullish Wall Street updates. Broadcom gained about 4.2% after disclosing multi-year agreements with Apple through 2031 to supply custom ASIC silicon. UBS raised its third-quarter DDR contract-pricing forecast to a 32% quarter-on-quarter increase from 17% and reiterated DRAM undersupply until at least the second quarter of 2028, while Citi added an upside catalyst watch on Micron and BofA reiterated a Buy rating with a $1,550 price target. Goldman's trading desk flagged an oversold buy-the-dip setup after momentum factors fell 24% from their peak, the largest drawdown since the first quarter of 2023. The sector recovery was reinforced by SK Hynix's roughly $28 billion Nasdaq listing the previous week and Samsung's upcoming earnings, keeping the memory super-cycle story in focus.
Texas Instruments Appoints Julie Knecht as New CFO
Texas Instruments has appointed Julie Knecht as its new chief financial officer, effective August 1. She succeeds Rafael Lizardi, who is retiring after 25 years with the company and will remain in an advisory role until August 31. Knecht, a 25-year veteran of the firm, has worked closely with Lizardi for over a decade. CEO Haviv Ilan highlighted her proven track record in strategic planning and financial operations as a key factor in her promotion. The company is scheduled to announce its second-quarter 2026 financial results on July 22.
Monolithic Power Systems Q1 revenue rises 26% to $804.2 million
Monolithic Power Systems reported first-quarter revenue of $804.2 million, up 26.1% year on year and exceeding analyst estimates by 2.8%. The company also provided next-quarter revenue guidance above expectations and delivered a solid beat on operating income estimates. Despite the strong results, the stock fell 16.9% since the report, suggesting investor expectations were even higher. Among the 15 analog semiconductor stocks tracked, aggregate revenues beat consensus by 1.5% and next-quarter guidance came in 5.7% above estimates, with share prices up 7.4% on average. Texas Instruments posted the biggest beat with revenue of $4.83 billion, while Universal Display had the weakest performance with revenue down 14.5% to $142.2 million.
Texas Instruments Stock Surges 52% in Three Months on AI Infrastructure Demand
Texas Instruments shares have rallied 51.9% over the past three months, outperforming the broader semiconductor industry's 23.7% gain and major peers including Qualcomm, Broadcom, and NVIDIA. The company is benefiting from the artificial intelligence infrastructure boom, with its data center business reaching an annual revenue run rate of roughly $1.2 billion in 2025, up more than 50% year over year, and first-quarter 2026 data center revenues jumping 90% from the prior-year period. First-quarter 2026 revenues increased 18.6% year over year, and management guided for second-quarter revenues between $5 billion and $5.4 billion, implying 12-21% growth. Texas Instruments plans to manufacture more than 95% of its wafers internally by 2030 and expects up to $1.6 billion in CHIPS Act funding, with total lifetime benefits estimated between $7.5 billion and $9.5 billion. The stock trades at a forward price-to-earnings ratio of 36.31, above the industry average of 23.32, but the premium is supported by strong cash generation, with $7.8 billion in operating cash flow and $4.35 billion in free cash flow over the last 12 months, and nearly $6 billion returned to shareholders over the past year.
Mid-Size Passenger Cars Lead Demand in Vehicle Communication Protocols
The global automotive communication protocol market is projected to grow from USD 7.77 billion in 2026 to USD 10.32 billion by 2033, at a CAGR of 4.1%. Mid-size passenger cars are forecasted to be the largest vehicle class throughout the period, dominating global production and sales and integrating advanced safety, infotainment, and connectivity solutions that necessitate higher network node counts. Automotive Ethernet is poised for rapid growth due to its capability to handle high-bandwidth data transmission essential for ADAS and infotainment, with prominent OEMs like Volkswagen, BMW, and General Motors adopting Ethernet-centric architectures. The North American market, particularly the US, is projected to experience significant growth, driven by extensive integration of safety and infotainment network nodes and the presence of semiconductor giants such as Texas Instruments and Microchip Technology. Key players in the market include NXP Semiconductors, Robert Bosch GmbH, Infineon Technologies AG, and STMicroelectronics.
Zacks Highlights Four Semiconductor Stocks to Buy for AI Capex Boom
Zacks Equity Research has identified Micron Technology, FormFactor, Texas Instruments, and Taiwan Semiconductor Manufacturing as four semiconductor stocks well-positioned to benefit from the ongoing surge in artificial intelligence infrastructure spending. The analysts note that large cloud providers and hyperscalers are expected to spend around $700 billion in capital expenditures in 2026, with the majority directed toward AI infrastructure, driving demand for advanced chips, memory, and manufacturing services. Micron Technology has already sold out its high-bandwidth memory supply for 2026 and has committed a significant portion of 2027 production, while its fiscal third-quarter revenues surged 346% year over year. FormFactor is seeing increased demand for its semiconductor testing solutions as AI chips become more complex, with first-quarter 2026 revenues up 32% year over year. Texas Instruments' data center business reached an annual run rate of about $1.2 billion in 2025, growing more than 50% year over year, and its first-quarter 2026 data center revenues surged 90% year over year. Taiwan Semiconductor, the world's largest contract chip manufacturer, reported a 41% year-over-year revenue increase in the first quarter of 2026, driven by strong demand for its advanced manufacturing and packaging technologies. All four stocks carry a Zacks Rank of #1 (Strong Buy) or #2 (Buy) and a Growth Score of A or B.
The China stock market is expected to open higher on Friday, with the Shanghai Composite Index sitting just beneath the 3,300-point plateau after edging up 0.03 percent to 3,297.29 on Thursday. The Shenzhen Composite Index fell 0.71 percent to 1,909.66. Gains in properties and financials were offset by weakness in resource stocks, with Industrial and Commercial Bank of China jumping 1.83 percent and Bank of China accelerating 2.10 percent. Wall Street provided a positive lead, as the Dow spiked 486.83 points or 1.23 percent, the Nasdaq rallied 2.74 percent, and the S&P 500 jumped 2.03 percent, driven by semiconductor stocks after strong earnings from Texas Instruments and Lam Research.
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