Texas Instruments Inc (NASDAQ:TXN), the biggest maker of analog semiconductors, stock rose 6.46% (As on April 24, 11:17:18 AM UTC-4, Source: Google Finance) after the company posted a better-than-anticipated forecast for the current period after demand for industrial and automotive components improved. The Dallas-based company has been emerging from a slump in demand in some of its major sectors, notably the automotive and industrial markets. It’s also working to preserve its sales from Chinese customers, which generated about 20% of revenue during the first quarter. Texas Instruments faces the threat of tariffs from both the US and China, presenting a puzzle for the chipmaker. The company is expanding its factory network in Texas and shifting to a more advanced type of production. That investment, which is weighing on short-term profitability, is partially aimed at lowering costs to make it better able to fend off growing competition from new Chinese rivals. Companies in that country are rapidly expanding their manufacturing capabilities for the type of chips made by Texas Instruments and companies such as Analog Devices Inc. They’re concentrating on that field because US export curbs limit their ability to go after higher-end processors.

Meanwhile, the company has four plants outside of the US, including one in China. It’s been running them at less than full capacity because it’s switching manufacturing to new, larger facilities near its home base in Texas. But that international network could now be “ramped up pretty quickly,” according to Chief Financial Officer Rafael Lizardi. Chips made in one region can easily be tested and packaged in others

TXN in the first quarter of FY25 has reported the adjusted earnings per share of $1.28, beating the analysts’ estimates for the adjusted earnings per share of $1.06, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11 percent to $4.07 billion in the first quarter of FY25, beating the analysts’ estimates for revenue by 4.13%.

Revenue will be $4.17 billion to $4.53 billion in the second quarter. That handily exceeded the average Wall Street estimate of $4.12 billion. Profit will be $1.21 to $1.47 a share in the second quarter, the company said, versus an estimate of $1.21 a share. First-quarter revenue rose 11% to $4.07 billion, with profit coming in at $1.28 a share. That performance compared with average estimates of $3.91 billion for sales and $1.07 a share for earnings.