Texas Instruments Reveals AI Infrastructure Potential with Over 50% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Source: Fool
- Revenue Growth Highlight: 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, with plans to report this as a separate segment, enhancing market visibility.
- Shareholder Return Strategy: Despite recent underperformance, Texas Instruments has raised its dividend for the 22nd consecutive year, currently yielding 3.2%, and repurchased $1.6 billion in stock in the first nine months of 2025, demonstrating commitment and confidence in shareholder value.
- Manufacturing Capacity Expansion: The company is investing $60 billion in a new fabrication center, which will impact free cash flow in the short term but is expected to significantly boost production capacity to meet the growing AI market demand in the long run.
- Market Challenges and Opportunities: Texas Instruments has underperformed over the past five years due to supply chain issues and a weak automotive market, but with rising AI integration demands, it is poised to become a key supplier in AI infrastructure moving forward.
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.
