Texas Instruments lifts 2Q forecasts

Texas Instruments (NYSE:TXN) said that its second quarter numbers would be better than expected Monday, another small indication that the economy, especially the IT sector, is coming out of the trough it hit in the first quarter. The big semiconductor company said that it expects revenue in the second quarter will be between $2.3 billion and $2.5 billion compared with a previous forecast of $1.95 billion to $2.4 billion. TI upped its EPS expectations to a range of $0.14 - $0.22, compared with the prior range of $0.01 - $0.15.

Texas Instrument's stock reacted to the news by rising 5% after hours to $20.75.

The news follows several comments by Intel (NASDAQ:INTC) over the last several weeks that it believes the worst of the recession had passed. That would be an indication that PC sales have hit a bottom. TI, which has a large business in the cell phone and embedded chip markets, is probably signaling that global handset sales will pick up in the second half of the year. The TI news is likely to help the market's view of large handset firms like Nokia (NYSE:NOK) as well.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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