The last time Texas Instruments’ (TXN) stock performed this well was just before the internet bubble burst in 2000.
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TXN stock finished trading 19% higher on April 23 and posted its best day on the markets since the year 2000. The big move higher came after the chipmaker reported better-than-expected financial results and gave upbeat guidance due to rising demand for its microchips from the artificial intelligence (AI) buildout.
TXN stock also closed at a record high of $282.23 per share and is now up 60% on the year. Until now, Texas Instruments had been widely viewed as not participating in the AI buildout as its microchips and processors are largely used in other technologies such as appliances and motor vehicles.
Texas Instruments’ Financial Results
For the year’s first quarter, Texas Instruments reported revenue growth of 19% to $4.83 billion, topping Wall Street’s consensus forecast of $4.53 billion. Earnings per share of $1.68 also managed to beat analyst estimates of $1.27.
Texas Instruments’ forward guidance was also strong, with management saying they expect revenue in the current second quarter of $5 billion to $5.4 billion, representing growth of 17% at the midpoint. Earnings are expected to be between $1.77 and $2.05 per share. Both forecasts topped Wall Street’s outlook for the company.
Is TXN Stock a Buy?
The stock of Texas Instruments has a consensus Moderate Buy rating among 26 Wall Street analysts. that rating is based on 14 Buy, 10 Hold, and two sell recommendations issued in the last three months. The average TXN price target of $271.74 implies 4% downside from current levels. These ratings could change after the company’s financial results.
