Texas Instruments (TXN) reported a 90% year-over-year increase in its data center revenue during Q1, contributing to total sales of $4.82 billion, which was 19% higher than the previous year and exceeded estimates by 7%. Earnings per share also surged 31% to $1.68, beating expectations of $1.37. Conversely, IBM saw its Q1 sales rise 9% to $15.91 billion, with earnings per share climbing 19% to $1.91, but the software segment’s growth decelerated to 11% from 14% the previous quarter, raising investor concerns.
Following the earnings reports on Wednesday, TXN shares hit a 52-week high, while IBM’s performance led to a drop near a one-year low, reflecting investor unease over software demand amid growing competition from AI technologies. Texas Instruments has benefited from the AI-driven demand for its analog components, while IBM’s software operations face potential threats from AI-native offerings.
