Mizuho analyst Vijay Rakesh upgraded his price targets on Micron Technology (MU), STMicroelectronics (STMPA), and Texas Instruments (TXN) this week, arguing that AI data center demand is creating durable tailwinds for both analog chips and memory in ways the market hasn’t fully…
iced in yet. He lifted his price targets for Micron to $800 from $740, STMicro to $68 from $56, and Texas Instruments to $300 from $255
Rakesh’s thesis boils down to three key ideas: – AI servers are becoming more power-intensive, increasing semiconductor content per system. – Lead times and pricing are improving in data center markets even as automotive demand remains soft. – AI demand is keeping NAND and DRAM markets tight into 2027, with potential supply disruptions adding further upside risk. Here’s why Texas Instruments could be one of the most interesting of the three calls today. Texas Instruments: more than a cyclical rebound Texas Instruments has moved back into focus as investors treat it as an AI winner rather than a pure analog recovery trade.
The company posted$4.8 billion in revenue, with industrial revenue up more than 30% year over year and data-center revenue up about 90%, showing two demand engines accelerating at the same time. The AI angle adds a structural layer on top of the industrial normalization investors already expected. Higher-power server architectures require more analog content per system, particularly in power management.