Jan 27 (Reuters) – Texas Instruments forecast first-quarter revenue above Wall Street estimates on Tuesday, signaling recovering demand for its analog chips following a prolonged market slump. Shares of the company rose nearly 5% in extended trading. After a more than 7% drop in 2025, TI's shares have risen more than 13% so far this year as investors hoped for signs of a years-long analog supply glut easing after excessive buying in the pandemic resulted in elevated customer inventory levels. The company is the first among major U.S. chipmakers to report earnings for the September quarter, making its results closely watched. Texas Instruments is also hailed as a demand indicator for various industries, given the widespread use of its chips. Texas Instruments expects revenue between $4.32 billion and $4.68 billion for the first quarter, compared with an estimate of $4.42 billion, according to data compiled by LSEG. Uncertainty surrounding U.S. President Donald Trump's sweeping global tariffs had also clouded the outlook for the semiconductor industry. Earlier in January, Trump imposed a 25% tariff on certain artificial intelligence chips, but these duties do not apply to chips and derivative devices imported for U.S. data centers, startups, non-data center consumer applications and non-data center civil industrial applications. Still, wider confusion around tariffs for analog chips and geopolitical uncertainty remain significant hurdles for TI, Stifel analysts said ahead of the results. The company reported fourth-quarter revenue of $4.42 billion, missing an estimate of $4.44 billion. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Pooja Desai)
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