The 26-year-old Williams was hurt early in the Texans' 23-22 loss to the Cowboys when he collided with teammate Nick Ferguson while covering a kick return.
Williams was taken off the field on a stretcher and an ambulance took him to Presbyterian Hospital in Dallas. Team doctor Walter Lowe said early Saturday morning that Williams had regained feeling in his extremities and most of his normal neurological function.
Later in the day, Houston coach Gary Kubiak said Williams' condition hadn't changed and that family members had joined the receiver in Dallas and that the Texans would update Williams' condition on Sunday.
"He's in good spirits," Kubiak said.