--- title: "This financial report from TXN is not just about TXN." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40129478.md" description: "First, let me ask a question: What does it mean when a veteran analog chip leader in "Industrial + Automotive + Data Center" sees a 19% year-over-year and 9% quarter-over-quarter increase in single-quarter revenue, with next quarter guidance stepping up another level? I think it means not that TXN itself is performing well in the market, but that the entire analog chip sector has truly emerged from the shadow of the 2024 inventory adjustment cycle. After the close on April 22, $Texas Instruments(TXN.US) announced its Q1 2026 financial report: revenue of $4.83 billion, EPS of $1.68—not only significantly exceeding market expectations of $1.38..." datetime: "2026-04-23T09:01:31.000Z" locales: - [en](https://longbridge.com/en/topics/40129478.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40129478.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40129478.md) author: "[沪上老徐](https://longbridge.com/en/profiles/26419342.md)" --- # This financial report from TXN is not just about TXN. First, let me ask a question: What does it mean when a veteran analog chip leader in "Industrial + Automotive + Data Center" reports a 19% year-over-year and 9% quarter-over-quarter revenue growth for a single quarter, with guidance for the next quarter pointing even higher? **I think it means not just that TXN itself is performing well, but that the entire analog chip sector is truly emerging from the shadow of the 2024 inventory adjustment cycle.** After the market closed on April 22, $Texas Instruments(TXN.US) released its Q1 2026 earnings report: revenue of $4.83 billion, EPS of $1.68—not only significantly beating market expectations of $1.38 but also delivering a solid quarter with "5 cents above guidance." More importantly, the Q2 guidance of $5.0 to $5.4 billion, with the midpoint implying continued sequential growth, is driven by both Industrial and Data Center engines. Both Industrial and Data Center segments firing simultaneously is something that has hardly occurred in the past two years. From 2023–2024, the industrial side was in a continuous inventory destocking phase, while Data Center was dominated by NVIDIA/AMD. Now, both legs are moving. So, what about the remaining ADI, SMTC, MCHP, and ON? Here, I'll explain each company's position in this sector in terms everyone can understand. $Analog Devices(ADI.US) (Analog Devices) — If TXN is a department store, ADI is a high-end boutique. It has a high exposure to high-performance analog, communications, and automotive. One of the most noteworthy things is that S&P recently upgraded ADI's credit rating to A (from A-), meaning institutional creditors are starting to give ADI "cheaper money," a strong signal in the current financing environment. Its communications business is projected to grow 43% in 2026, the fastest-growing single business line among the five. $Microchip Tech(MCHP.US) (Microchip) — This company focuses on MCUs (microcontrollers) + analog + connectivity, leaning towards industrial control and embedded applications. Citi's analog industry report this year singled out MCHP as its top pick for 2026. The reason is that MCHP had the deepest inventory adjustment over the past two years, its product line innovation cycle is restarting, and its valuation has significant upside potential from low levels. Think of it as a "potential leader in the making for catch-up plays." $Semtech(SMTC.US) (Semtech) — This company is smaller in size but occupies a unique niche. It focuses on data center interconnect and power management chips (PMICs). The key catalyst is its increasing share in TPU-related segments—TPUs are AI inference chips like those from Google. If SMTC can secure a larger share in TPUs, its upside could be more pronounced than the larger players. This is a "small-cap + AI Beta" stock. $ON Semiconductor(ON.US) (Onsemi) — Its main business is power semiconductors and SiC (silicon carbide). The biggest difference from the previous companies is ON's deep ties to automotive electrification. Previously dragged down by the EV cycle, it is now emerging from the bottom of the cycle, with niche demand leading the recovery. Think of it as "the semiconductor veteran in the automotive sector whose inventory has finally bottomed out." Looking at all five side by side: TXN is the benchmark, ADI is the defensive yet growth-oriented choice, MCHP is the high-beta play, SMTC is the small-cap AI catalyst, and ON is the cyclical recovery story. **Personally, I believe TXN's earnings report is not an isolated event but a signal that the entire analog chip sector is shifting from "moderate recovery" to "accelerated recovery." In terms of portfolio positioning, I would arrange it like this—core holdings in ADI and TXN, tactical allocations to MCHP and SMTC for beta, and a small early-cycle position in ON while waiting for further improvement in automotive data. This sector has been too quiet for the past two years, and I think it deserves more attention over the next two quarters.** ### Related Stocks - [ADI.US](https://longbridge.com/en/quote/ADI.US.md) - [SMTC.US](https://longbridge.com/en/quote/SMTC.US.md) - [900927.CN](https://longbridge.com/en/quote/900927.CN.md) - [600822.CN](https://longbridge.com/en/quote/600822.CN.md) - [ON.US](https://longbridge.com/en/quote/ON.US.md) - [TXN.US](https://longbridge.com/en/quote/TXN.US.md) - [MCHP.US](https://longbridge.com/en/quote/MCHP.US.md) - [MCHPP.US](https://longbridge.com/en/quote/MCHPP.US.md) ## Comments (5) - **陈浩南 · 2026-04-26T11:43:34.000Z**: txn lie flat - **不奋东西 · 2026-04-23T15:42:52.000Z**: Except for Xianke, all opened higher! - **不奋东西 · 2026-04-23T14:58:10.000Z · 👍 1**: It is indeed worth paying attention to. - **海哥闲谈 · 2026-04-23T09:02:57.000Z**: If I had to choose just one company, not pursuing extreme flexibility but wanting to capture the sector's beta, I would personally pick ADI. The reasons are: rating upgrade + leading growth rate in communications + management is the most stable in this cycle. - **数据即信仰 · 2026-04-23T09:02:36.000Z**: Is Citi choosing MCHP because it's cheap, a valuation logic?