To The Moon

After AI Storage's Rerating, TXN Puts Analog and Power Next in Line

$Texas Instruments(TXN)$   is not a GPU story. It sells the "keep-the-lights-on" silicon: power management and signal conversion that sits everywhere from factory gear to car platforms and, increasingly, AI data centers. This quarter, that boring profile suddenly looked like a rerating setup, in the same way AI storage turned "commodity bits" into an infrastructure trade.

Why TXN jumped after earnings

The backward-looking quarter was close to in line, but the forward setup improved in ways that matter for multiples.

1) Guidance beat with real dollars attached.

For Q1, $Texas Instruments (TXN.US)$ guided revenue of $4.32B to $4.68B versus the $4.42B analyst average. The midpoint is $4.50B, which is $80M above that estimate. It also guided EPS of $1.22 to $1.48 versus $1.26 expected, a $0.09 beat at the midpoint. 

2) Data center demand became measurable, not vibes.

Management said data center revenue grew about 70% year over year in Q4, and that data center was 9% of total 2025 sales. Crucially, $Texas Instruments (TXN.US)$ said it will break out data center sales separately going forward. That is how an AI spillover narrative turns into a line item that can be modeled. 

3) The analog cycle sounded like it was turning.

Reuters flagged that the outlook is also supported by a broadening industrial recovery, and cited the view that the multi-year analog inventory correction looks essentially complete, setting up faster growth into 2026. $Texas Instruments (TXN.US)$ stock was up nearly 9% in extended trading on that combination. 

The AI storage parallel, and the analog power rerating question

Storage stocks got rerated when AI inference reframed storage from "cheap capacity" to "performance plus capacity infrastructure." TXN's print is the analog version of that argument: AI racks do not just buy compute and memory, they also pull more power conversion, regulation, sensing, and signal integrity content per rack.

If data center exposure is both growing and disclosed cleanly, analog and power chips can stop trading purely like a cyclical industrial proxy and start earning at least some structural multiple support. The rerating debate is now open.

Who benefits, and what each name is "about"

The sympathy read-through is not a single-ticker story. A more complete peer basket for your angle includes:

$ON Semiconductor (ON.US)$ : AI rack power delivery leverage, plus cyclical torque if auto demand stops being a headwind.

$Analog Devices (ADI.US)$ : high-value analog and signal chain tied to power monitoring, sensing, and system reliability, with industrial recovery as the base case.

$NXP Semiconductors (NXPI.US)$ : auto and industrial heavy mix, a clean read-through when the market buys "industrial is recovering" and "auto is stabilizing" signals.

$Microchip Technology (MCHP.US)$ : utilization and margin snapback if industrial inventory digestion is ending, typically one of the more cyclical ways to express a turn.

$STMicroelectronics (STM.US)$ : power devices plus embedded and sensors, with power narrative support but still highly sensitive to auto and industrial cycles.

$INFINEON TECHNOLOG (IFNNY.US)$ : a global power semiconductor bellwether, often treated as a pure play on efficiency and power architecture upgrades, with autos as a swing factor.

The punchline that connects them: AI investment opportunities are expanding beyond GPUs and memory into the "electricity and signal" layer, and TXN just gave investors numbers that make that layer easier to underwrite. 

What to watch next

If analog and power are heading for a storage-style rerating, the next earnings round will be scored on three proof points: guidance staying above consensus, evidence that industrial demand is broadening, and hard disclosure that makes data center exposure trackable over time. $Texas Instruments (TXN.US)$ raised the bar by putting those datapoints on the table.

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