Texas Instruments' upbeat Q2 forecast pushes chip stocks higher

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Texas Instruments jumped 7 per cent in premarket trade on Wednesday, sparking a rally in chip stocks as its strong second-quarter revenue forecast fanned optimism that chip demand was picking up after a years-long slump.

The company is seen as a bellwether for semiconductor demand, as its products are used across industries ranging from automotive to industrial and consumer electronics including smartphones.

Texas Instruments said on Tuesday it expects revenue with a midpoint of $3.8 billion for the second quarter, compared with LSEG estimates of $3.77 billion. "Looking ahead, we anticipate Texas Instruments to drive a continued recovery profile into the 2H of the year and into 2025" said J.P. Morgan analysts in a note.

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