Can ANYTHING stop the semiconductor stocks? They’re on one of their most powerful runs in years – with one juggernaut in particular standing out this week!
Just look at the MoneyShow Chart of the Day. It’s a weekly chart of Texas Instruments Inc. (TXN) over the last five years. The stock surged as much as 19% yesterday, its biggest one-day rally in a quarter century!
A Texas-Sized Move in “Texan”
Source: TradingView
An incredibly bullish outlook drove the rally. TI said it would generate $5 billion to $5.4 billion in Q2 sales, far exceeding the $4.8 billion that analysts expected. CEO Haviv Ilan said demand was strong across multiple divisions and geographies, rather than confined to one or two product lines.
TI is more sensitive to manufacturing, industrial, and automotive demand than other chip stocks. It doesn’t make the kind of high-end chips that AI darlings like Nvidia Corp. (NVDA) do.
But it’s still benefiting from the AI boom. That’s because it sells chips that go into data center-related equipment, like gear that regulates power supplies. Sales in that division surged 90% year-over-year in Q1.
Bottom line? TI is now up around 60% year-to-date. The iShares Semiconductor ETF (SOXX) is up 40% YTD. And both are leaving the SPDR S&P 500 ETF Trust (SPY) – up only 3%-and-change – in the dust. Just like strength in transports by the way, strength in chips is something you want to see if you’re a market bull!
