Texas Instruments Target Raised to $340 After 30% Industrial Revenue Surge
TXN•Stifel raised Texas Instruments’ price target to $340 from $290 after citing a 30% year-over-year and 20% sequential industrial revenue jump in Q1. Data center revenue hit 12% of Q1 sales at a $2 billion rate, while U.S. capacity rose to $25 billion, underpinning a path to $1 trillion valuation.
1. Price Target Increase and Catalysts
Stifel raised its price target on Texas Instruments from $290 to $340 after meetings with the company highlighted a broadening industrial recovery and accelerating growth across all regions. Q1 industrial revenue increased over 30% year-over-year and more than 20% sequentially, while the data center business reached about 12% of quarterly sales and a $2 billion annual rate.
2. Capacity Expansion and Valuation Prospects
Texas Instruments has boosted U.S. manufacturing capacity to roughly $25 billion, up from $16 billion during the prior upcycle, providing ample cleanroom and shell capacity. Analysts view this footprint as a strategic advantage and believe the company could achieve a $1 trillion market valuation if analog stocks receive a similar rerating to processors and memory peers.
