Intel CFO Warns of Q1 Supply Trough While Texas Instruments Posts 70% AI Data Center Revenue Surge

Context The semiconductor industry continues to command significant attention, fueled by an increasing global appetite for computing power, particularly for artificial intelligence (AI). This dynamic environment sees chipmakers charting diverse paths. This week, investors await crucial first-quarter financial results from two foundational players, Intel and Texas Instruments, offering fresh insights into the sector.

Key Facts Intel's Chief Financial Officer, David Zinsner, indicated that the company’s available chip supply will hit its lowest point in the first quarter. He stated that supply is expected to improve in the second quarter and beyond. This anticipated supply constraint poses a near-term challenge for Intel as it pursues a capital-intensive strategy to regain its manufacturing edge.

Texas Instruments, a key supplier of analog and embedded processing chips, presented a contrasting performance. The company’s data center revenue surged approximately 70% year over year in the fourth quarter. This growth reflects the increasing need for its specialized components in high-performance AI servers. Furthermore, Texas Instruments demonstrated robust financial health, with its free cash flow for 2025 nearly doubling compared to the prior year, reaching $2.9 billion.

What It Means These contrasting reports highlight the varied market conditions and strategic focuses within the semiconductor industry. Intel's ability to navigate its projected Q1 supply trough and accelerate its manufacturing output will be critical for its long-term turnaround efforts. Its future performance depends on how quickly it can scale up production to meet demand.

Texas Instruments' strong data center growth underscores the broadening impact of AI demand across the chip ecosystem. This significant revenue increase, coupled with substantial free cash flow generation, positions the company strongly. Observers will watch whether Texas Instruments can sustain this AI-driven expansion while waiting for broader recoveries in its traditional industrial and automotive markets.