Citi Names Texas Instruments and Monolithic Power Systems as Top Picks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 23 2026
0mins
Should l Buy TXN?
Source: seekingalpha
- Market Cycle Phase: Citi analyst Atif Malik noted that Texas Instruments (TXN) and Monolithic Power Systems (MPWR) have entered the 'Phase 2' of the cyclical framework, where stocks with product cycles or self-help stories are expected to outperform.
- Texas Instruments Outlook: As TXN approaches the end of its capital investment cycle, its gross margin is expected to expand further, with R&D investments focusing on the data center market, indicating strong growth potential.
- Monolithic Power Systems Growth: MPWR is expected to outpace industry growth, driven by enterprise data sales, with analyst projections indicating that data center-related sales will grow between 50% and 70% year-over-year in 2025, significantly exceeding the 6% growth of the analog and microcontroller industry.
- Future Projections: By 2026, revenue related to data centers and AI for analog companies is estimated to grow approximately 70% year-over-year, which could lead to multiple re-ratings for the sector as sales from the data center market are expected to exceed 25%.
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Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 196.200
Low
125.00
Averages
193.53
High
245.00
Current: 196.200
Low
125.00
Averages
193.53
High
245.00
About TXN
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets, such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, and others. Signal Chain includes products that sense, condition, and measure real-world signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs) and applications processors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Speed and Efficiency Gains: The new chips can process AI tasks up to 90 times faster than traditional chips while consuming over 120 times less energy, with the MSPM0G5187 priced below $1 in bulk purchases, further reducing product costs and enhancing market competitiveness.
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- Acquisition to Expand Tech Portfolio: Texas Instruments plans to acquire Silicon Labs for $231 per share, with the deal expected to close in the first half of 2027, which will add approximately 1,200 wireless connectivity products and combine expertise in wireless and analog processing, strengthening its market position.
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- Integration Design Advantage: The AM13Ex MCU is the first to integrate a high-performance Arm Cortex-M33 core with the TinyEngine NPU and advanced real-time control architecture into a single chip, lowering bill-of-materials costs by up to 30%, allowing for simultaneous implementation of complex motor control and AI features.
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- New MCU Launch: Texas Instruments introduces the MSPM0G5187 and AM13Ex microcontrollers, integrating the TinyEngine NPU to support edge AI, significantly enhancing embedded processing capabilities for various applications.
- Performance Enhancement: The TinyEngine NPU reduces AI inference latency by up to 90 times and energy consumption by over 120 times, greatly improving processing capabilities for resource-constrained devices and promoting the adoption of low-cost intelligent devices.
- Integrated Innovation: The AM13Ex MCU integrates a high-performance Arm Cortex-M33 core and TinyEngine NPU, enabling real-time control and AI acceleration for multi-motor systems, lowering bill-of-materials costs by up to 30%, and enhancing the intelligence of industrial automation and appliance designs.
- Development Ecosystem: TI's CCStudio Edge AI Studio provides developers with over 60 models and application examples, simplifying the selection, training, and deployment of AI models, further accelerating the application of edge AI across various devices.
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- Disappointing Employment Data: The US nonfarm payrolls unexpectedly dropped by 92,000 in February, with the unemployment rate rising to 4.4%, indicating a weakening labor market that raises doubts about economic health and may lead the Fed to adopt a more cautious approach in future policy adjustments.
- Surge in Energy Prices: WTI crude oil prices surged over 12% to a 2.5-year high as the ongoing Middle East conflict exacerbates supply concerns, which is expected to push global oil prices even higher, impacting profitability across related sectors.
- Corporate Earnings Resilience: Despite the overall market decline, 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, demonstrating a degree of resilience among businesses that may support future market recovery.
See More
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- Analyst Rating Divergence: According to Seeking Alpha's Quant Rating, TXN holds a 'Hold' rating with a score of 3.3, receiving an A for profitability prospects but only a C- for growth factors, reflecting analysts' cautious outlook on the company's growth potential.
- Acquisition Impact: In February, Texas Instruments signed a definitive agreement to acquire Silicon Labs for approximately $7.5 billion; despite the strategic rationale, analysis suggests TXN shares remain fairly valued post-deal, with limited near-term upside.
- Market Reaction Analysis: On Wall Street, 14 analysts rated TXN as Buy or higher, while 18 recommended Hold and 5 rated it Sell or lower, indicating a significant divergence in market sentiment regarding the stock.
See More
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- Market Decline: The S&P 500 index fell by 0.95%, the Dow Jones Industrial Average by 1.00%, and the Nasdaq 100 by 0.76%, reflecting market concerns that the ongoing Middle East war could drive energy prices higher, leading to inflation.
- Weak Employment Data: U.S. nonfarm payrolls unexpectedly dropped by 92,000 in February, with the unemployment rate rising to 4.4%, indicating a deteriorating labor market and exacerbating fears of an economic slowdown.
- Surge in Energy Prices: WTI crude oil prices surged over 9% to a 2.25-year high due to the ongoing conflict in the Middle East, raising inflation expectations and diminishing investor confidence in the stock market.
- Corporate Earnings Performance: Despite the overall market weakness, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings projected to grow by 8.4%, demonstrating resilience among some firms that may provide future market support.
See More
Texas Instruments Unveils AI-Enabled Chips
- AI Chip Launch: Texas Instruments has introduced the new MSPM0G5187 and AM13Ex chips, which feature built-in artificial intelligence capabilities, allowing electronic devices to run AI tasks locally, thereby improving response times and reducing power consumption, with applications expected in health wearables and industrial machines.
- Speed and Efficiency Gains: The new chips can process AI tasks up to 90 times faster than traditional chips while consuming over 120 times less energy, with the MSPM0G5187 priced below $1 in bulk purchases, further reducing product costs and enhancing market competitiveness.
- Motor Control Applications: The AM13Ex chip is designed for motor control in home appliances, robots, and industrial systems, enabling the management of multiple motors while running AI programs to monitor performance and improve efficiency, which is expected to drive advancements in smart home and industrial automation.
- Acquisition to Expand Tech Portfolio: Texas Instruments plans to acquire Silicon Labs for $231 per share, with the deal expected to close in the first half of 2027, which will add approximately 1,200 wireless connectivity products and combine expertise in wireless and analog processing, strengthening its market position.
See More
Texas Instruments Launches New AI Microcontrollers
- New MCU Launch: Texas Instruments introduces the MSPM0G5187 and AM13Ex microcontroller families, integrating the TinyEngine™ NPU to support edge AI, significantly enhancing embedded processing capabilities and enabling engineers to deploy intelligence across various devices.
- Cost Efficiency: The MSPM0G5187 MCU is priced under $1 in 1,000-unit quantities, reducing system and operating costs through hardware acceleration, providing an affordable AI solution for resource-constrained portable products.
- Integration Design Advantage: The AM13Ex MCU is the first to integrate a high-performance Arm Cortex-M33 core with the TinyEngine NPU and advanced real-time control architecture into a single chip, lowering bill-of-materials costs by up to 30%, allowing for simultaneous implementation of complex motor control and AI features.
- Development Tool Support: TI's CCStudio Edge AI Studio supports both MCU families, simplifying model selection, training, and deployment, with over 60 models and application examples available to help developers quickly deploy edge AI in devices.
See More
Texas Instruments Launches New AI Microcontrollers
- New MCU Launch: Texas Instruments introduces the MSPM0G5187 and AM13Ex microcontrollers, integrating the TinyEngine NPU to support edge AI, significantly enhancing embedded processing capabilities for various applications.
- Performance Enhancement: The TinyEngine NPU reduces AI inference latency by up to 90 times and energy consumption by over 120 times, greatly improving processing capabilities for resource-constrained devices and promoting the adoption of low-cost intelligent devices.
- Integrated Innovation: The AM13Ex MCU integrates a high-performance Arm Cortex-M33 core and TinyEngine NPU, enabling real-time control and AI acceleration for multi-motor systems, lowering bill-of-materials costs by up to 30%, and enhancing the intelligence of industrial automation and appliance designs.
- Development Ecosystem: TI's CCStudio Edge AI Studio provides developers with over 60 models and application examples, simplifying the selection, training, and deployment of AI models, further accelerating the application of edge AI across various devices.
See More
US Stocks Plunge Amid Rising Energy Prices and Labor Market Concerns
- Market Weakness: The S&P 500 index fell by 1.33%, and the Dow Jones Industrial Average hit a 3.5-month low, reflecting investor concerns over the Middle East conflict potentially driving energy prices higher and sparking inflation risks, which dampens market confidence.
- Disappointing Employment Data: The US nonfarm payrolls unexpectedly dropped by 92,000 in February, with the unemployment rate rising to 4.4%, indicating a weakening labor market that raises doubts about economic health and may lead the Fed to adopt a more cautious approach in future policy adjustments.
- Surge in Energy Prices: WTI crude oil prices surged over 12% to a 2.5-year high as the ongoing Middle East conflict exacerbates supply concerns, which is expected to push global oil prices even higher, impacting profitability across related sectors.
- Corporate Earnings Resilience: Despite the overall market decline, 74% of S&P 500 companies reported earnings that exceeded expectations, with Q4 earnings growth projected at 8.4%, demonstrating a degree of resilience among businesses that may support future market recovery.
See More
Texas Instruments Faces Seven-Day Decline
- Stock Price Decline: Texas Instruments (TXN) shares fell 2.3% on Friday to $193.34, marking a seven-day losing streak with a nearly 7% drop over the previous six sessions, indicating market concerns about its future performance.
- Analyst Rating Divergence: According to Seeking Alpha's Quant Rating, TXN holds a 'Hold' rating with a score of 3.3, receiving an A for profitability prospects but only a C- for growth factors, reflecting analysts' cautious outlook on the company's growth potential.
- Acquisition Impact: In February, Texas Instruments signed a definitive agreement to acquire Silicon Labs for approximately $7.5 billion; despite the strategic rationale, analysis suggests TXN shares remain fairly valued post-deal, with limited near-term upside.
- Market Reaction Analysis: On Wall Street, 14 analysts rated TXN as Buy or higher, while 18 recommended Hold and 5 rated it Sell or lower, indicating a significant divergence in market sentiment regarding the stock.
See More
Middle East War Triggers Market Turmoil
- Market Decline: The S&P 500 index fell by 0.95%, the Dow Jones Industrial Average by 1.00%, and the Nasdaq 100 by 0.76%, reflecting market concerns that the ongoing Middle East war could drive energy prices higher, leading to inflation.
- Weak Employment Data: U.S. nonfarm payrolls unexpectedly dropped by 92,000 in February, with the unemployment rate rising to 4.4%, indicating a deteriorating labor market and exacerbating fears of an economic slowdown.
- Surge in Energy Prices: WTI crude oil prices surged over 9% to a 2.25-year high due to the ongoing conflict in the Middle East, raising inflation expectations and diminishing investor confidence in the stock market.
- Corporate Earnings Performance: Despite the overall market weakness, 73% of S&P 500 companies exceeded earnings expectations, with Q4 earnings projected to grow by 8.4%, demonstrating resilience among some firms that may provide future market support.
See More
