UPDATE 2-TI Q1 revenue, Q2 outlook top estimates

* EPS $0.01 vs forecast loss $0.08 to break-even

* Rev $2.09 bln vs view $1.9 bln

* Sees Q2 shr $0.01-$0.15, Q2 revenue $1.95-$2.4 bln

* Shares rise 3 pct in extended trade (Adds analyst, executive quotes and share price update)

NEW YORK, April 20 (Reuters) - Texas Instruments (TXN.N) on Monday posted a surprise quarterly profit on better-than-expected revenue and gave a rosier outlook for the current quarter as demand for its chips appeared to stabilize.

Shares rose to $17.90, or more than 3 percent, in late trade after closing at $17.32 in the regular session on the New York Stock Exchange, after the company said business was better than expected in the last few weeks of the quarter.

"It appears that the industry and TI in particular are putting in a bottom for the March quarter," said Ashok Kumar, an analyst at Collins Stewart.

"We think the revenue will stabilize at these depressed levels and find its way back," he said.

TI forecast current quarter earnings per share of 1 cent to 15 cents on revenue of $1.95 billion to $2.40 billion. The low end of its revenue target was the same as average analyst estimates, according to Reuters Estimates.