Texas Instruments CEO Sees No Slowdown in Data Center Demand: 'Actually Growing Demand' (CORRECTED)

What happened

Texas Instruments reported third-quarter earnings of $2.62 per share, beating estimates, with revenue rising to $6.06 billion from $4.74 billion a year earlier. It forecast fourth-quarter earnings of $2.45 to $2.79 per share on revenue of $5.8 billion to $6.3 billion, both above analysts' estimates.

Confirmed

Global impact / market context

Strong results and guidance suggest chip demand is holding up, especially from data centers and industrial customers. That matters because data center revenue jumped 95%, which means more chips are being sold into servers and computing infrastructure, supporting future sales and profit for Texas Instruments.

Analyst inference

The stock edged lower in premarket trading despite beating estimates and closing up 2.47% the prior session. That suggests investors may have already expected strong results, which means the good news was largely priced in before the report, limiting further gains.

Analyst inference

What to watch

1. Texas Instruments expects fourth-quarter earnings of $2.45 to $2.79 per share on revenue of $5.8 billion to $6.3 billion, both above analysts' estimates. Confirmed
2. Watch whether data center revenue, which jumped 95%, keeps growing, since slower spending by data center customers could reduce chip orders and pressure future sales. Proposed
3. Industrial revenue surged more than 40%, so watch whether that pace holds; a slowdown could signal weaker factory demand and weigh on results. Analyst inference

Evidence

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