Texas Instruments beat on earnings and revenue in its first-quarter report.

The business also gave upbeat guidance due to high demand for its analog chips that are crucial for the AI data center buildout.

The stock is on pace for its best day since the dot-com era.

Texas Instruments had its best day on Wall Street since 2000 after the chipmaker reported better-than-expected quarterly results and gave upbeat guidance due to high demand for its analog chips that are crucial for the AI data center buildout. This also touches on aspects of bear market.

Shares of Texas Instruments soared 19% on Thursday, closing at a record. They’re up 63% for the year.

For the first quarter, Texas Instruments reported revenue growth of 19% to $4.83 billion, topping the $4.53 billion average analyst estimate, according to LSEG. Earnings per share of $1.68 also beat estimates, as analysts on average predicted EPS of $1.27.

Texas Instruments noted revenue in the second quarter will be between $5 billion and $5.4 billion, representing growth of 17% at the midpoint. EPS will be between $1.77 and $2.05, the corporation remarked.

CEO Haviv Ilan remarked on the earnings call late Wednesday that revenue in the company’s data center segment increased around 90% from a year ago. The industrial unit was up 30%.

With hyperscalers like Meta and Amazon building data centers at a dizzying pace, Texas Instruments is a major beneficiary.

“We are prepared,” Ilan remarked. “If the industry wants to grow at the same rate as Q1, we mentioned 19% year over year, we are ready. If it wants to accelerate, we are ready as well.”

Although Texas Instruments doesn’t construct the most advanced processors, like those from Nvidia and Advanced Micro Devices, its analog chips perform essential tasks such as regulating power and converting signals from the real earth into data needed for other chips to execute more complex jobs.

Apple is among its biggest customers. Tim Cook, Apple’s CEO, last year committed to making “critical foundation semiconductors” for iPhones and other devices at Texas Instruments’ updated chip fabrication plants in Utah and Texas.

Other major customers include Nvidia, Ford, Medtronic and Elon Musk’s SpaceX.

Texas Instruments is spending $60 billion to build three recent plants in the U.S. It also makes chips in Germany, Japan and China.

In February, the corporation agreed to procure chip design firm Silicon Laboratories for $7.5 billion, expanding its ability to generate wireless and connectivity chips for industrial and consumer applications.

Ilan also addressed concerns about the memory shortage, saying there’s no evidence to suggest it will negatively impact his company’s personal electronics segment in future quarters.

“Customers are very aware of it, but I think they are doing well preparing themselves,” he said. 

WATCH: First look at Texas Instruments’ $60 billion U.S. megaproject, where Apple will create iPhone chips