Shares of Texas Instruments (TXN) surged 5.40% in pre-market trading on Thursday, following the company's release of better-than-expected second-quarter guidance and robust demand for its analog chips. The strong performance comes despite ongoing concerns about U.S. tariffs and uncertainty in the semiconductor industry.
Texas Instruments reported first-quarter earnings of $1.28 per share, significantly beating analysts' expectations of $1.06 per share. Revenue for the quarter came in at $4.07 billion, surpassing the consensus estimate of $3.91 billion. The company's outlook for the second quarter was particularly impressive, with projected revenue between $4.17 billion and $4.53 billion, above Wall Street estimates of $4.10 billion.
The positive forecast from Texas Instruments, one of the first major U.S. chipmakers to report this earnings season, has helped alleviate some concerns about the impact of potential tariffs on the semiconductor industry. CEO Haviv Ilan addressed the tariff issue on the earnings call, stating that while there is uncertainty, the company does not see an immediate near-term impact on second-quarter results. The strong performance in the industrial market, which showed a broad recovery after seven consecutive quarters of decline, is a significant factor contributing to the optimistic outlook.
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