Key Highlights

● Texas Instruments finished modestly lower on October 22, giving back post-earnings gains.

● Earnings of $2.62 a share beat the $2.40 estimate.

● Revenue of $6.06 billion topped forecasts of about $5.92 billion.

● Fourth-quarter revenue guidance midpoint of $6.05 billion topped the $5.73 billion expected.

Texas Instruments (NASDAQ:TXN) gave back its post-earnings gains on Thursday, October 22, 2026, finishing modestly lower after a strong quarterly report was swamped by the worst semiconductor selloff since June. The chipmaker's slip came as the Nasdaq-100 suffered one of its heaviest losses in months.

The exact size of the closing move was not confirmed, but reports pointed to a modest decline. The stock had traded slightly lower before the opening bell, after rising in after-hours trading on Wednesday following its results.

A clean beat and a strong forecast

Texas Instruments reported after the close on Wednesday. Earnings of $2.62 a share beat estimates of $2.40, and revenue of $6.06 billion topped forecasts of $5.92 billion to $5.93 billion.

The outlook was even more striking. The company guided fourth-quarter revenue to a midpoint of $6.05 billion, well above the $5.73 billion analysts had expected. That midpoint sits roughly level with the quarter just reported, signalling that the company does not expect demand to fade into the year-end.

Texas Instruments is one of the world's largest makers of analog and embedded processing chips, which manage power and signals in everything from cars to factory equipment and household devices. That makes its guidance a useful read on industrial and automotive demand, rather than on AI data centers.

Why the gains disappeared

None of that mattered much on Thursday. The Philadelphia Semiconductor Index posted its biggest one-day drop since June 23, according to market data, as investors fled chip stocks regardless of what end markets they serve.

Two reports from Wednesday evening set off the rout. Meta Platforms (NASDAQ:META) showed a 2026 capital spending range of $135 billion to $145 billion and negative free cash flow, which marked its first cash outflow in more than a decade. Lam Research (NASDAQ:LRCX) guided December-quarter revenue with a midpoint slightly below what many investors had hoped for and warned of supply constraints lasting into 2027.

Nvidia (NASDAQ:NVDA) closed at $212.21 and was one of the biggest drags on the S&P 500, according to market reports. Lam, KLA (NASDAQ:KLAC), Applied Materials (NASDAQ:AMAT) and Teradyne (NASDAQ:TER) all tumbled, and Intel (NASDAQ:INTC), AMD (NASDAQ:AMD), Sandisk (NASDAQ:SNDK) and Marvell (NASDAQ:MRVL) fell sharply. Against that, Texas Instruments' modest slip looked relatively mild.

The wider market

The Nasdaq Composite fell 694.00 points to 26,008.86, its steepest drop since June 5, ending a seven-session winning streak. The Nasdaq-100 lost about $1.32 trillion in market value, with 26 AI and chip names accounting for the bulk of the net loss.

Yet the selling was narrow. About two of every three S&P 500 stocks rose, according to market reports. Consumer staples had their best day since April 2025, health care hit a record high and Treasuries rallied, sending the 10-year yield back below a closely watched threshold for the first time since September 22.

Texas Instruments Tests Whether Steady Demand Holds

Texas Instruments' guidance points to steady demand in its core markets, and investors may look for confirmation from other industrial and automotive suppliers in coming weeks. Friday's S&P Global PMI readings will offer a fresh read on manufacturing activity. The Federal Reserve's decision on October 28 and the earnings calendar of Intel results on October 29 will also test whether the chip sector can steady after Thursday's rout.