Texas Instruments (TXN) stock surged 5.04% in pre-market trading on Wednesday, as investors eagerly await the company's first-quarter earnings report scheduled for after the market close. The semiconductor giant's performance is being closely watched as it kicks off the earnings season for major chip manufacturers, with analysts and investors keen to gauge the impact of recent tariff developments on the industry.

The pre-market rally comes despite a challenging backdrop for the tech sector, which has seen the Nasdaq Composite drop 16% year-to-date. Investors appear optimistic about Texas Instruments' prospects, with KeyBanc analyst John Vinh expecting "in-line to slightly better results and in-line guidance." Vinh cited potential "pull-in activity" ahead of recently announced tariffs as a possible tailwind for the company's performance.

However, uncertainty looms large over the semiconductor industry and the broader tech sector due to ongoing trade tensions and tariff concerns. While some tech hardware products have received temporary exemptions from high tariffs, chips and electronics are expected to be included in upcoming sector-specific tariffs. As Texas Instruments reports its earnings, investors will be particularly focused on any guidance the company provides regarding the potential impact of tariffs on its business and the overall demand in key markets such as automotive and industrial sectors. The company's broad customer base of over 100,000 clients across various industries makes it a bellwether for both the technology sector and the wider economy, adding significance to its upcoming earnings report.