Texas Instruments Incorporated (NASDAQ:TXN) is one of the stocks Jim Cramer shed light on recently. Cramer praised the company’s guidance and discussed the company’s recent earnings, as he commented:
Next, we’ve seen big runs in all sorts of semiconductor stocks this week, especially the memory and data storage plays, but those, they get a lot of attention. I’m going to talk about another one that was a little less explosive, but I thought really was one of the most important developments in the industry, and that’s Texas Instruments, which issued tremendous guidance on Tuesday night. Saw its stock rally 10% the next day. This stock usually used to do those moves in the 80s, but haven’t done it in a long time.
Texas’ gains are notable because this analog chipmaker has lagged the broader semiconductor group in recent years. It has a little data center data exposure, about 9% of its sales, but it’s much more levered to the real-world economy. Most of the businesses come from industrial and automotive end markets. Now, the actual quarter was a minor disappointment, but the stock roared because Texas Instruments gave much better than expected guidance for the current quarter. While Texas Instruments typically sees the sequential earnings decline from the fourth quarter to the first quarter, that’s very usual for semiconductor makers of the old school due to seasonal trends for its top-end markets.
This time, they’re predicting a sequential increase from the fourth quarter. Why? Management explained that the Texas’ industrial end markets are showing signs of recovery, with orders improving throughout the fourth quarter. And its smaller data center business, I gotta tell you, I think it’s really worth watching because it is going to grow and grow. It’s up 64% year-over-year in 2025. That’s what drove the breakout. The company was actually effusive for the first time in, since like 1985.
Photo by Yiorgos Ntrahas on Unsplash
Texas Instruments Incorporated (NASDAQ:TXN) designs and manufactures semiconductors and related products used in industrial, automotive, and electronic applications.
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