Texas Instruments Inc.’s stock immediately jumped nearly 8% in extended trading Tuesday after the semiconductor company rang up

Texas Instruments Inc. shares jumped as much as 8.5% on Wednesday, the biggest intraday gain in more than four years, after the chipmaker’s revenue forecast indicated that a slump in demand may be easing.

Texas Instruments stock surges on an earnings beat and signs of market recovery. Is the chip pioneer's stock a buy today?

Texas Instruments jumped 7% in premarket trade on Wednesday, sparking a rally in chip stocks as its strong second-quarter revenue forecast fanned optimism that chip demand was picking up after a years-long slump.

Texas Instruments reported first-quarter revenue of $3.66 billion, which beat the consensus estimate of $3.611 billion, according to Benzinga Pro. The company's top-line results were down 16% on a year-over-year basis and down 10% sequentially as revenue declined across all end markets.