By Shaun Pruitt
Publication Date: 2026-04-24 21:50:00
As the Q1 earnings season progresses, Texas Instruments TXN) and IBM IBM) have provided a pivotal moment that has reconfirmed market sentiment more than reshaped it.
The reconfirmation is that semiconductor companies are still prime investments right now, thanks to AI data center expansion, but that AI may start to eat the lunch of software companies, and the segments of tech giants exposed to or dependent on software operations.
Texas Instruments may not be at the forefront of investors’ minds regarding the AI data center boom, but its Q1 results showed it’s a promising player in the landscape. On the other hand, there are growing concerns that IBM’s software segment could come under pressure despite posting favorable quarterly results as well.
Following their Q1 reports on Wednesday, TXN shares have spiked to a new 52-week high and kept the rally going among chip stocks, with IBM falling near a one-year low and reigniting a pullback in software stocks amid AI…
