Texas Instruments Price Target Increased to $370, Data-Center Sales Seen at $4.5B by 2028
TXN•Bank of America raised its price target for Texas Instruments to $370 from $320, projecting its data-center business will reach about $4.5 billion by 2028 (18% of total sales) as 800-volt architecture ramps. Shares of Texas Instruments climbed nearly 5% in line with broader AI chip sector gains on Friday.
1. Bank of America Outlook on Analog Semiconductor Space
Bank of America identified Texas Instruments, Analog Devices and ON Semiconductor as top analog picks, highlighting a shift from inventory headwinds to cyclical tailwinds in industrial and automotive markets. The firm argued that AI data centers and the move to 800-volt architecture could drive content gains beyond current Street estimates.
2. Texas Instruments Price Target Raised and Data-Center Forecast
The price target for Texas Instruments was raised to $370 from $320, with projections that its data-center business will reach approximately $4.5 billion by 2028, representing about 18% of total sales. Growth drivers include multi-phase voltage regulators and gallium nitride sockets entering production as part of the 800-volt transition.
3. Stock Performance in AI Chip Rally
Texas Instruments shares rose nearly 5% on Friday, outperforming the broader market alongside Qualcomm and AMD as investors reacted to optimism over AI power demand. The rally was fueled by hopes for progress in U.S.-Iran talks and a firm market tone boosting chip sector momentum.
