Texas Instruments' Potential in the AI Wave
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy TXN?
Source: NASDAQ.COM
- Growing Market Demand: As the AI infrastructure builds out, Texas Instruments' analog chips play a crucial role in power management within data centers, with significant growth expected in the coming years, particularly as the AI market is still in its infancy.
- Investment Expansion: Texas Instruments' recent acquisition of Silicon Labs indicates its intent to invest in new chip production capacity, preparing the company for future market demands and driving long-term growth.
- Sales Reporting Adjustment: In Q4 2025, the company broke out its data center business, which, despite accounting for only 9% of total revenue, grew 64% year-over-year, highlighting its potential in the AI sector and possibly fueling a recovery in the analog chip industry.
- Long-Term Success Outlook: While there are other more exciting chipmakers in the market, Texas Instruments, with its industry-leading position and growth initiatives, is expected to become a top chip manufacturer by 2027, especially driven by the AI buildout.
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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: 223.000
Low
125.00
Averages
193.53
High
245.00
Current: 223.000
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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