Texas Instruments (TXN) beat expectations for its second-quarter financial performance, with revenue reaching $3.95 billion, showing that demand in the industrial and automotive sectors is picking up, and customer moves to restart orders led to an after-hours surge in the stock's share price of more than 6 per cent.

Global PC sales are also trending up, showing a gradual recovery in the market, suggesting that the semiconductor industry is experiencing positive changes and should continue to focus on related stocks.

The data shows that revenue is expected to reach $3.95 billion, exceeding analysts' forecasts of $3.77 billion. Earnings per share are expected to be in the range of $1.05 to $1.25, which is also higher than the average market estimate of $1.16. This figure suggests a gradual recovery in demand as customers digest their inventories and then place new orders.

Texas Instruments' financial expectations are seen as an important bellwether for the semiconductor industry, with a broad customer base covering a wide range of sectors from aerospace to consumer electronics, and a slump in demand for industrial and automotive components that may be easing. Shares in the stock rose 1.25 per cent to $165.47 a share after the earnings announcement and rose further by more than 6 per cent in after-hours trading. The market remains optimistic about its future prospects, despite a nearly 3 per cent drop in the share price so far this year.

Global PC shipments in the first three months of this year increased by about 3%, showing that the market is gradually recovering. In addition, Texas Instruments first-quarter revenue was $3.66 billion, down 16 per cent from the same period last year, but still slightly higher than market expectations.

According to Summit Insights analyst Kinngai Chan, demand for analogue integrated circuits (ICs) is stabilising, with seasonal demand changes likely in the coming quarters.