Texas Instruments Data Center Sales Double as AI Spending Lifts Growth

EarningsIndustry Impact 4
โดย Zacks Investment Research·US·Read original
Summary · why it matters

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.

Impact on stocks 3

Semiconductors▲ · 3 stocks
Analog Devices Inc
ADI
▲ PositiveDemandrelevance

Analog Devices posted Q3 FY2026 revenues up 40% YoY with communications surging 84% on data center demand.

ON Semiconductor Corporation
ON
▲ PositiveDemandrelevance

ON Semiconductor said AI data center revenues more than doubled YoY and expects 2026 revenues to more than double.

Theme Impact 2

Related news

▲2

Analog Devices Beats on Q3 Earnings, Guides Q4 Revenue to $4.3 Billion

Analog Devices reported third-quarter fiscal 2026 non-GAAP earnings of $3.45 per share, beating the Zacks Consensus Estimate by 3.6% and up from $2.05 per share a year earlier, while revenues of $4.02 billion surpassed the consensus by 2.5% and rose 40% from the year-ago quarter's $2.88 billion. Within that total, Industrial contributed $1.97 billion, or 49% of revenues, up 53% year over year; Automotive brought in $998.2 million, or 25%, up 16%; Communications generated $654.5 million, or 16%, up 84%; and Consumer added $397.2 million, or 10%, up 6%. The adjusted gross margin expanded 330 basis points to 72.5% and the adjusted operating margin reached 50%, up 780 basis points year over year. For the fourth quarter of fiscal 2026, management guided revenues to $4.3 billion, plus or minus $100 million, with adjusted earnings of $3.86 per share, plus or minus $0.15, and an adjusted operating margin of about 52%. The company returned $1.7 billion to shareholders in the quarter, comprising $535 million in dividends and $1.16 billion in share repurchases, and held $2.17 billion in cash and cash equivalents as of Aug. 1, 2026.
ADI ▲
Semiconductors ▲
Zacks Investment Research·13hRead more →
▲3

Subaru Partners With onsemi to Evaluate Embedded Power Platform for Future EVs

Subaru has entered a strategic collaboration with onsemi to evaluate its Embedded Power Platform, a step toward integrating next-generation power architectures into future electric vehicles. Under the partnership, Subaru gains early access to engineering samples and technical expertise as it assesses whether onsemi's power semiconductor integration can deliver scalable, efficient solutions for vehicle electrification. The two companies said the work will explore how a more integrated power system design can improve vehicle performance, efficiency and design flexibility as automakers expand their electrified lineups. The collaboration was announced by onsemi on GlobeNewswire.
7270.JP ▲ON ▲
Semiconductors ▲Electrification & Mobility ▲
Simply Wall St·18hRead more →

Ministry of Education Partners with Germany's Infineon to Raise Thai Vocational Education to International Standards

The Ministry of Education has reached a strategic cooperation agreement with Infineon, Germany's largest manufacturer of semiconductor devices and chips, to elevate Thai vocational education to international standards through the dual-system or Dual TVET model, which combines theoretical study in educational institutions with hands-on training in enterprises, following the Learn to Earn concept of learning while working. Under the partnership, industry will take part in designing curricula, skills training, and competency standards from the classroom all the way to the factory floor. The cooperation prepares the ground for Infineon's new plant in Thailand, scheduled to open on October 1, which will serve as a major regional base for advanced chipset production. The government also aims to adapt the successful template of the German vocational system so that enterprises and educational institutions work together fully, developing curricula that meet the needs of future industries, especially in high-technology fields, while upgrading the assessment of professional skills and learner qualifications so they are recognized internationally. The partnership also covers exchanges of experts and bringing advanced technology into the classroom to develop vocational teachers across the entire system, and gives students internships at Thai and German enterprises so they gain professional skills, language ability, and real experience, ready to work immediately.
IFX.XETRA ▲
Semiconductors
thunhoon.com·23hRead more →
© 2026 MarketDXNews