How Texas Instruments Stock Jumped 9.9% Wednesday

Shares of Texas Instruments (NASDAQ: TXN) ended Wednesday's trading 9.9% above Tuesday's closing price. The semiconductor veteran reported Q4 2025 results on Tuesday evening, offering an unusual mix of hits and misses.

A mixed earnings report with a silver lining

Let's start with the usual headline figures. TI's revenue rose 10% year over year to $4.42 billion. The analyst consensus called for $4.45 billion, so it was a slight miss. Unadjusted earnings fell 2%, landing at $1.27 per diluted share. Here, Wall Street was looking for $1.29 per share. The bottom line included unexpected charges of $0.06 per share related to goodwill impairment and tax items. Without these one-time items, TI's earnings result would have been more than enough.

So TI fell short of the usual market-moving targets. But investors were quick to brush off these minor disappointments to focus on several positive surprises instead.

• Guidance for the next quarter was consistently above the current Street projections.
• A new chip-making facility in Sherman, Texas, is ramping up production ahead of schedule. Among other items, this factory produces voltage regulators for high-powered computers, ultimately serving the lucrative data center market. That's an ideal segment for beating forecasts.
• Data center orders rose by a staggering 70% year over year. That wasn't even a reporting segment last year. Still, the data center business is now large enough to deserve its own year-end commentary with detailed financials delivered on the earnings call.

Image source: Getty Images.

Made in America, sold to data centers

TI sees manufacturing as a competitive advantage.

Its in-house chip-making assets allow the company to churn out generous product volumes at a time when third-party manufacturing giants led by Taiwan Semiconductor (NYSE: TSM) and Samsung (OTC: SSNL.F) are booked solid with artificial intelligence (AI) accelerator and memory-chip orders. And TI's top factories operate in Texas and Utah, not Taiwan and China. As a result, management didn't even mention tariffs in the earnings call.

The Q4 numbers were technically a miss, but the market clearly cared more about where TI is headed than where it just was. That's a vote of confidence in the company's data center pivot and in-house manufacturing strategy.

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing and Texas Instruments. The Motley Fool has a disclosure policy.