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(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.
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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.