Stifel said Texas Instruments will outperform as it builds on its growing data center business and continues to leverage its analog products. The investment firm upgraded the chipmaker to hold-from-buy. The company also raised its price target to $250 from $215, implying a 19.7% upside from Wednesday’s closing price. “After a six-year upswing in investment cycles that constrained profitability and margins, we believe TXN is well-positioned to gain share in the next analog upcycle and return to a strong (free cash flow) generation,” analyst Tore Svanberg said in a note to clients. “TXN is entering a period where multiple tailwinds support the outlook.” Texas Instruments agreed in February to buy chip design company Silicon Laboratories for $7.5 billion, with the aim of becoming a bigger player in wireless connectivity chips. These semiconductors are used in everything from smart home appliances to cars. The agreement is one of several signs that Texas Instruments is expanding beyond analog chips for electronics, and is likely to be a boon for investors in the company’s stock, Stifel said. “Our analysis suggests that the[Silicon Labs]acquisition could be even more effective than the original model,” Svanberg wrote. “Given potential (i) revenue synergies and (ii) elimination of $7 billion of acquisition debt using excess (free cash flow), we expect this transaction to be accretive to +10.5% (earnings per share) by 2030E.” The analyst said the deal would create synergies for Texas Instruments’ growing data center business, which is also likely to boost the company’s stock price. Earlier this year, the semiconductor company reported a 70% increase in data center orders in 2025 compared to the previous year. And in March, Texas Instruments announced a new 800V DC power architecture solution for next-generation AI data centers. Demand for data centers has remained strong over the past few years, primarily due to the continued development and proliferation of artificial intelligence. As of late December, more than $61 billion had flowed into the data center market in 2025, up slightly from a year earlier, according to S&P Global data. “As power demand and supply emerge as a bottleneck for next-generation (data center) infrastructure, we believe TXN is well-positioned to capture this growing demand by leveraging our domestic 300mm capacity expansion and high-efficiency product portfolio to ensure reliable supply,” Svanberg wrote. The analyst added that he expects the company’s data center division to account for 20% of total sales by 2028 or 2029. But Stifel said the company’s analog hardware business is also likely to gain momentum. “TXN missed out on potential share gains during the cyclical upswing from CY20A to CY22A due to capacity constraints,” Svanberg said. “This justifies the uptick in the capex cycle that TXN has initiated to expand its 300mm capacity, which we believe will enable the company to expand its analog market share.” Texas Instruments stock is up 20% year-to-date, significantly outperforming the broader market. TXN YTD Mountain Texas Instruments stock has been on the rise this year.
