Texas Instruments Q1: Strong Numbers, Mixed Reviews

0:00Texas Instruments has dropped some solid first quarter numbers that got investors hyped. Revenue hit $4.83 billion, of 19% from last year, with earnings per share at $1.68. They also gave a strong second quarter outlook, forecasting $5.4 billion in revenue and earnings between $1.77. Since in $2.05, the stock popped hard after that, thanks to Data Center Sales surging 90% year over year. But Morgan Stanley isn't jumping on the bandwagon yet. Analyst Joseph Moore kept their underweight rating while bumping the price target to $221 from $180. They see the improvements, but worry the rally has priced in too much too soon, especially with valuation risks still in play. Free cash flow is the real standout here, flipping to a $1.4 billion gain from a $274 million loss last year. That's after years of heavy spending on new factories, now easing with capex down to

1:02$676 million. Investors love this shift as demand picks up. Backing that strategy, the company scored up to $1.61 billion in CHIPS Act funding for 300 millimeter wafer fabs in. Texas and Utah. Plus, they're buying Silicon Labs for $7.5 billion to boost wireless and embedded processing tech. The recovery looks real with better cash flow and policy support, but skeptics like Morgan Stanley say, TI still needs to prove it, last without, leaning on one-offs. Keep watching if this manufacturing bit pays off big. That's your Durham News Today update, AI-powered and always on.