Texas Instruments grows 23% and slips as Dell jumps 10% on the week
Texas Instruments reported $5.46 billion in Q2 revenue on July 22 and fell 3.13% the next day. Dell rose 10.39% for the week and Oracle fell 9.03%. Opaleye's Alpha Cognition buy was the only sizable Texas open market purchase.
Dell gained 10.39% last week, mostly on another company's news, and Oracle fell 9.03%. Texas Instruments had the week's biggest report.
Texas Instruments grew revenue 23% last quarter, and its stock still slipped. The Dallas company reported second quarter revenue of $5.46 billion on July 22, up 23% from a year earlier, and earnings of $2.14 a share, up 52%, in its results release. It guided third quarter revenue to $5.65 billion to $6.15 billion.
"Revenue increased 13% sequentially and 23% from the same quarter a year ago," said Haviv Ilan, TI's chairman, president and chief executive.
Shares of TXN closed at $294.19 on July 22, the day of the release, and at $284.99 the next day, down 3.13%. They finished Friday at $279.58. TI's quarterly report, filed July 24, lists Dallas as its home.
Two big caps went opposite ways
Dell and Oracle had the biggest swings among the Texas large caps we checked, and they went in opposite directions. Returns below are Lone Star Index calculations from Yahoo Finance closing prices.
| Company | July 17 close | July 24 close | Week |
|---|---|---|---|
| Dell Technologies (DELL) | $396.34 | $437.50 | up 10.39% |
| Texas Instruments (TXN) | $284.02 | $279.58 | down 1.56% |
| Oracle (ORCL) | $126.41 | $114.99 | down 9.03% |
Most of Dell's gain came in one session. It closed at $404.15 on July 21 and $441.80 on July 22, a 9.32% jump. Dell's latest quarterly report lists Round Rock. Oracle lost ground on four of five days, and its annual report, filed June 22, lists Austin. Oracle fell 4.61% on July 23, and MarketBeat's coverage that day listed worries about the cost of its AI data center buildout, though it didn't pin the drop on one cause.
Our read
TI's quarter looks better in the cash lines than in the headline. The release shows second quarter capital spending of $514 million, down from $1.31 billion a year earlier, plus $549 million in CHIPS Act cash in the quarter. Trailing free cash flow came to $6.53 billion against $1.76 billion a year before, but TI counts CHIPS Act proceeds in that number, $1.18 billion of it over the past year. So part of the jump is the fab buildout slowing and part is government money, and we'd keep the two apart. On the call, management said data center revenue doubled from a year ago and industrial grew about 30%, and that its clean room space covers it for about the next three years, with room still available in its first Sherman fab.
The finance chief also said the $2.14 a share included a 5 cent benefit from discrete tax items that wasn't in TI's original guidance. Past that, nothing we read pins the stock's slip on one cause, and neither the release nor the call addresses the share price.
Dell's jump had almost nothing to do with Dell. Super Micro said in a July 21 business update that it took in more than $60 billion in new orders in its June quarter and expected gross margin of 15% to 17%, far above its guidance of 8.2% to 8.4%. Trefis wrote that Dell had no news of its own and that investors read Super Micro's orders as AI server demand big enough to lift Dell too. Oracle sits on the other side of that trade as the one paying for the buildout, with about $70 billion in planned net capital spending this fiscal year and plans to raise another $40 billion in debt and equity, Reuters reported in June.
Insider buying was close to empty
We pulled every Texas Form 4 filed on filings from July 20 through July 26 and kept only code P open market purchases. Grants, option exercises, employee plan buys and sales under preset trading plans don't count. We found one buyer of any size, and it wasn't a company officer.
Opaleye Management, a Boston investment manager that files as a 10% owner, bought 200,086 shares of Grapevine based Alpha Cognition (ACOG) on July 22 and 23 at weighted averages of $7.83 and $7.80, its Form 4 shows. That's about $1.57 million by our math. The fund held 2,995,193 shares afterward, plus 100,000 in a managed account. Alpha Cognition's quarterly report lists Grapevine as its address.
One filing looked like a purchase and wasn't. A Csquare director's Form 4 describes shares bought through the Coppell company's IPO directed share program, reported under code A, so we left it out. Most of the rest were grants, tax withholding and sales under preset plans, including a Phillips 66 officer's plan sale at about $211.
What to watch
- July 30: Huntsman releases second quarter results after the close, with its call the next morning, per its June 30 announcement.
- July 31: Every listed symbol is due to be trading on the Texas Stock Exchange, which had about 3,000 symbols going live the week of July 20, with blue chips starting July 23, under its own rollout schedule.
- Aug. 4: NRG Energy reports second quarter results, per its July 7 announcement.
The full map of Texas venues is on Texas Exchanges, and the screener sorts the names above by sector.
Lone Star Index publishes research, not investment advice.