Texas Instruments Reports 50% Revenue Growth from AI Data Centers, Signaling Strong Market Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: NASDAQ.COM
- AI Market Growth: Texas Instruments reported over 50% year-over-year revenue growth from data centers in the first nine months of 2025, indicating strong demand in the AI infrastructure sector that is expected to drive future business expansion.
- Shareholder Returns Enhancement: Despite facing market challenges, Texas Instruments has raised its dividend for the 22nd consecutive year, currently yielding 3.2%, while also repurchasing $1.6 billion in stock in the first nine months of 2025, boosting investor confidence.
- Manufacturing Capacity Expansion: The company is investing $60 billion in a new fabrication center, which, while currently impacting free cash flow, is expected to significantly enhance future production capacity to meet growing market demands.
- Market Performance Lag: Despite showing potential in the AI sector, Texas Instruments' stock has underperformed over the past five years, primarily due to external factors like supply chain issues and a weak automotive market, necessitating attention to its future market recovery capabilities.
Analyst Views on TXN
Wall Street analysts forecast TXN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TXN is 194.33 USD with a low forecast of 125.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
12 Buy
6 Hold
4 Sell
Moderate Buy
Current: 185.710
Low
125.00
Averages
194.33
High
245.00
Current: 185.710
Low
125.00
Averages
194.33
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.
