Texas Instruments benefits from rising AI demand for analog chips

Texas Instruments reported Q2 2026 revenue between $5.46 billion and $5.5 billion, a 23% jump from the same period last year. That beat Wall Street estimates, driven by analog chips that handle power management and signal conversion in virtually every piece of electronic hardware.

The unsung hero of AI infrastructure

TI’s data center revenue doubled year-over-year in Q2 2026. Data center revenue grew roughly 70% year-over-year in Q4 2025 and approximately 90% year-over-year in Q1 2026. Analog revenue specifically rose 26% year-over-year in the quarter. CEO Haviv Ilan pointed to industrial, automotive, and data center markets as the primary growth engines, with data centers carrying the heaviest load.

Forward guidance signals more momentum

TI’s Q3 2026 revenue guidance came in between $5.65 billion and $6.15 billion, with the midpoint above analyst consensus forecasts. Analysts at Arete have raised their ratings on the stock, projecting TI’s revenue could reach $34 billion by fiscal 2028 with earnings per share hitting $17, driven by continued analog semiconductor demand from AI applications.

TI and Nvidia are working together on 800V DC power architectures and humanoid robotics applications. Being deeply embedded in Nvidia’s ecosystem means TI benefits directly from every new data center contract, every robotics deployment, and every next-generation AI cluster that goes online.

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