Impressive growth in an important product segment was the secret sauce behind Texas Instruments' (NASDAQ: TXN) double-digit stock rise over the past few trading days. On Tuesday, the company posted its first quarterly earnings release this still-young year, and while it missed on key fundamentals, it still provided plenty of reason to become (or remain) bullish on its stock.
With that blustery tailwind, Texas Instruments finished the week up by more than 11% in value, according to data compiled by S&P Global Market Intelligence.
In the center of a hot segment
Texas Instruments' fourth quarter of 2025 saw the company earn just over $4.42 billion, a sturdy 10% improvement over the same period of 2024. Net income in accordance with generally accepted accounting principles (GAAP) declined over that one-year span, but not to a worrying degree -- it was down by 3% to $1.16 billion ($1.27 per share).
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Those figures landed just shy of the consensus analyst estimates. These stood at $4.45 billion for revenue and $1.29 per share for net profitability.
One of the powerhouse segments driving Texas Instruments' double-digit revenue growth during the period was data centers. These facilities are experiencing a boom these days thanks to the heavy demand for artificial intelligence (AI) technology, which is relatively resource-intensive. In the quarter, the company's take from this business alone zoomed 70% higher.
NASDAQ: TXN
Key Data Points
Updates and an upgrade
Investors and analysts alike became notably more optimistic on Texas Instruments following the earnings release. A clutch of pundits raised their price targets on the veteran tech company, and one, Bank of America Securities' Vivek Arya, even upgraded the stock (although only to neutral from his previous underperform, or sell).
The beauty of the data center business is that it's large, wide, and sustainable -- the great hunger for AI is going to necessitate years of retrofittings and build-outs, at least. And we should remember that this is far from Texas Instruments' only business. This stock feels like a good one to own for these times.
