Arete Research raises TXN price target to $405 after Q2 revenue jumps 23% year-over-year, driven by AI-driven analog chip demand.
Texas Instruments saw its price target raised to $405 from $303 by Arete Research, which upgraded the stock to Buy. The upgrade follows a strong Q2 report, with revenue reaching $5.46 billion, up 23% year-over-year and exceeding the $5.24 billion consensus. Earnings per share rose 52% to $2.14, beating estimates of $1.92.
The company’s data center income doubled, reflecting surging demand for analog semiconductors in AI infrastructure. Arete anticipates a three-year shortage in analog chips, positioning Texas Instruments for market share gains. The firm projects $34 billion in revenue and $17 EPS by fiscal 2028.
AI-driven power demands are accelerating adoption of 800-volt DC architectures, boosting demand for Texas Instruments’ analog content per rack. The upgrade highlights the company’s strategic advantage in addressing power bottlenecks in hyperscale data centers.