Texas Instruments Incorporated (NASDAQ:TXN) shares rose more than 6% on Wednesday following the company’s reported Q2 results, with EPS of $2.45 coming in above the Street estimate of $2.13. Revenue was $5.21 billion, compared to the Street estimate of $4.65 billion.

Similar to when the company issued highly conservative COVID lockdown-impacted guidance in Q2/20, its Q2/22 guidance also proved to be conservative, with the company significantly exceeding its initial revenue outlook as China reopened faster than feared.

The company expects Q3/22 EPS in the range of $2.23-$2.51, compared to the consensus of $2.26, and revenue in the range of $4.9-5.3 billion, compared to the consensus of $4.97 billion.

The analysts at Deutsche Bank continue to view the company as one of the highest quality companies in the semiconductor sector, but believe the combination of accelerating macro/sector-wide demand headwinds and company-specific supply additions will keep the shares relatively range bound. The analysts increased their price target on the company’s shares to $165 from $160, while reiterating their hold rating.