Texas Instruments Signals a Pivotal Shift in Growth Trajectory

Texas Instruments US8825081040

Texas Instruments appears to be at a strategic inflection point. For the first time in 16 years, the company's guidance for the first quarter of 2026 projects sequential growth, marking a potential end to a prolonged period of stagnation. This cautious optimism stems from a noticeable rebound within its core industrial and data center markets.

Beyond its operational performance, Texas Instruments continues its commitment to shareholder returns. The board declared a quarterly cash dividend of $1.42 per share, payable on February 10, 2026. This announcement marks the 22nd consecutive year of annual dividend increases, reinforcing the firm's long-term capital return strategy.

Furthermore, the semiconductor manufacturer stands to benefit from the U.S. CHIPS Act. The company is eligible for up to $1.6 billion in direct funding, contingent upon reaching specific milestones. Management has also outlined capital expenditure plans of $2 to $3 billion for the current year. These investments are aimed at scaling production capacity to meet anticipated demand growth from artificial intelligence and infrastructure sectors.

Rebound Across Key Segments

The chipmaker reported fourth-quarter 2025 revenue of $4.4 billion, representing a 10% year-over-year increase. A standout performer was the data center segment, which saw revenue surge approximately 70%, establishing itself as a primary growth engine. The Analog division (+14%) and Embedded Processing unit (+8%) also posted positive annual developments.

Market observers interpret the Q1 2026 revenue forecast—a range of $4.32 to $4.68 billion—as a signal of a sustained market recovery. Customers appear to have largely worked through the excess inventory that burdened the industry in prior periods, bringing genuine end-demand back into sharper focus.

Current Trading and Upcoming Events

Following a gain of nearly 20% over the past month, the company's shares currently trade at €181.78. This price places the equity just about 6% below its 52-week high of €194.22, recorded on February 20, 2025.

Key data points include:
* Recent Closing Price: €181.78
* 30-Day Change: +19.73%
* 52-Week Peak: €194.22

Investors can expect further details on the company's direction during a scheduled teleconference on Tuesday, February 24, 2026. Management is expected to provide comprehensive insights into capital allocation and strategic priorities for the remainder of the fiscal year.