Texas Instruments' Q1 sales rose 19% year over year to $4.82 billion, with data center segment revenue up 90%, while IBM's sales increased 9% to $15.91 billion but software growth slowed.
Texas Instruments exceeded revenue and EPS estimates, raising its Q2 outlook, while IBM's unchanged guidance and decelerating software growth fueled concerns about AI-driven competition and pressured its stock.
The market continues to favor semiconductor companies benefiting from AI data center expansion, while software firms like IBM face uncertainty from generative AI disruption, despite IBM's diversified business and steady overall growth.
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