Texas Landowner Emerges as Today's Leading S&P 500 Stock in a Unique AI Investment.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 17 2025
0mins
Source: Barron's
- Texas Pacific Land's Performance: Texas Pacific Land was the top performer in the S&P 500 on Wednesday.
- Data Center Development: The company is advancing plans to establish large-scale data centers in West Texas.
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Analyst Views on TPL
Wall Street analysts forecast TPL stock price to rise
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 502.850
Low
1050
Averages
1050
High
1050
Current: 502.850
Low
1050
Averages
1050
High
1050
About TPL
Texas Pacific Land Corporation is the landowner in the State of Texas with approximately 882,000 surface acres of land, principally concentrated in the Permian Basin. Its segments include Land and Resource Management and Water Services and Operations. The Land and Resource Management segment focuses on managing Company’s oil and gas royalty interest and surface acres located in 19 different countries. The Land and Resource Management segment encompasses the business of managing its approximately 882,000 surface acres of land and its approximately 207,000 NRA of oil and gas royalty interests, principally concentrated in the Permian Basin. This segment consists of royalties from oil and gas, revenues from easements, commercial leases and renewables, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin. Its services include water sourcing and produced water disposal.
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.
Texas Pacific Land Corporation Stock Rises Amid Analyst Upgrade
- Analyst Upgrade: Texas Pacific Land Corporation's stock rose 0.6% to $639, driven by KeyBanc analyst Tim Rezvan's price target increase from $350 to $639, reflecting strong performance in the oil and gas sector.
- Market Resilience: The stock's rise comes as the S&P 500 index fell over 1%, indicating market confidence in Texas Pacific's growth potential, particularly amid ongoing demand in the energy sector.
- Land Resource Advantage: Rezvan highlighted the significant potential for Texas Pacific to develop power generation and data center facilities on its land, especially given the increasing resource demands of artificial intelligence technology, which could provide new revenue streams.
- Future Growth Opportunities: While the company will continue to derive most of its revenue from traditional energy tenants, Rezvan believes that leveraging its land and water resources for new facility construction will become a key driver of Texas Pacific's future growth.
See More
Analyst Raises Texas Pacific Land Price Target to $639
- Price Target Increase: An analyst raised Texas Pacific Land Corporation's price target to $639 from $350, indicating significant potential in tapping into a burgeoning tech industry trend, which is likely to attract more investor interest.
- Stock Performance: On a day when the broader market declined over 1%, Texas Pacific's stock managed to close 0.6% higher, demonstrating resilience in a challenging market environment and boosting investor confidence in its future performance.
- Resource Advantage: The analyst highlighted the company's substantial potential for developing power generation and data center facilities on its land, particularly given the surging demand for artificial intelligence technology, with Texas Pacific possessing ample land and water resources to support such facilities.
- Market Opportunity: While the company is expected to continue generating most of its revenue from traditional energy tenants, the analyst believes that the opportunity in data center construction will become a significant growth driver for Texas Pacific, suggesting that the company will eagerly capitalize on this market opportunity.
See More
US Stocks Plunge Sharply as Market Risk Sentiment Intensifies
- Market Downtrend: The S&P 500 index fell by 1.20%, the Dow Jones Industrial Average dropped by 1.58%, and the Nasdaq 100 index decreased by 1.47%, reflecting a risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Trade Policy Impact: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that may curb global economic growth and exacerbate downward pressure on the markets.
- Software Stocks Under Pressure: Concerns over AI impacts led to a more than 9% drop in CrowdStrike and other software stocks, which not only affected the market capitalization of these companies but also negatively influenced overall market sentiment.
- Economic Data Performance: The U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, exceeding expectations and indicating potential improvement in economic activity, yet the market remains cautious ahead of upcoming corporate earnings and economic data releases.
See More
US Stocks Decline Amid Trade Policy Uncertainty
- Market Decline: The S&P 500 Index fell by 0.22%, the Dow Jones Industrial Average by 0.24%, and the Nasdaq 100 by 0.66%, reflecting heightened risk-off sentiment due to uncertainty over U.S. trade policy, which may undermine investor confidence.
- Tariff Increase Impact: President Trump's executive order raising global tariffs from 10% to 15% could suppress global economic growth, negatively impacting the stock market, particularly in trade-sensitive sectors, as investors reassess risk exposure.
- Earnings Outlook: Despite the overall market decline, over 80% of S&P 500 companies have reported earnings, with 74% exceeding expectations, indicating resilience in corporate earnings, and S&P earnings growth is projected to reach 8.4% in Q4.
- Economic Data Focus: The market will closely monitor upcoming economic data, including consumer confidence index and initial jobless claims, as these figures will influence the Fed's interest rate decisions, further impacting stock market trends.
See More
Top Performing Large-Cap Stocks Last Week
- First Majestic Silver Surge: First Majestic Silver Corp. saw a 25.23% increase this week after reporting better-than-expected fourth-quarter adjusted EPS results, indicating strong profitability in the silver mining sector that may attract more investor interest.
- Omnicom Buyback Announcement: Omnicom Group Inc. rose 22.52% this week following better-than-expected Q4 sales results and the announcement of a $5 billion stock buyback plan, which is expected to enhance shareholder returns and boost market confidence.
- Garmin's Strong Financials: Garmin Ltd. jumped 18.66% this week after reporting fourth-quarter financial results that exceeded expectations and issuing FY26 guidance above estimates, suggesting ongoing growth potential in the smart device market.
- Pan American Silver's Recovery: Pan American Silver Corp. soared 15.54% this week after its fourth-quarter financial results surpassed expectations, reflecting robust performance in silver mining that could drive its future market performance.
See More
US Economic Slowdown and Tariff Ruling Impact Markets
- Economic Slowdown: The US economy expanded at an annualized rate of only 1.4% in Q4, a significant drop from 4.4% in the previous quarter and well below the expected 3%, indicating a fragile recovery that could dampen market confidence.
- Accelerating Inflation: The Federal Reserve's preferred inflation gauge rose to a 3% annual rate in December, with a monthly increase of 0.4%, marking the fastest pace since February, which may prompt the Fed to adopt a more cautious approach in future monetary policy.
- Tariff Authority Ruling: The Supreme Court ruled that the president lacks the authority to impose tariffs under the International Emergency Economic Powers Act, emphasizing that only Congress has this power during peacetime, potentially leading to litigation over the refund of over $130 billion in tariffs already collected, increasing policy uncertainty.
- Widening Trade Deficit: The US goods and services deficit widened to $70 billion in December, with the full-year 2025 trade gap remaining at $901 billion, indicating that tariff policies have failed to effectively narrow the trade imbalance, which could impact the government's economic policy direction.
See More
Texas Pacific Land Corporation Stock Rises Amid Analyst Upgrade
- Analyst Upgrade: Texas Pacific Land Corporation's stock rose 0.6% to $639, driven by KeyBanc analyst Tim Rezvan's price target increase from $350 to $639, reflecting strong performance in the oil and gas sector.
- Market Resilience: The stock's rise comes as the S&P 500 index fell over 1%, indicating market confidence in Texas Pacific's growth potential, particularly amid ongoing demand in the energy sector.
- Land Resource Advantage: Rezvan highlighted the significant potential for Texas Pacific to develop power generation and data center facilities on its land, especially given the increasing resource demands of artificial intelligence technology, which could provide new revenue streams.
- Future Growth Opportunities: While the company will continue to derive most of its revenue from traditional energy tenants, Rezvan believes that leveraging its land and water resources for new facility construction will become a key driver of Texas Pacific's future growth.
See More
Analyst Raises Texas Pacific Land Price Target to $639
- Price Target Increase: An analyst raised Texas Pacific Land Corporation's price target to $639 from $350, indicating significant potential in tapping into a burgeoning tech industry trend, which is likely to attract more investor interest.
- Stock Performance: On a day when the broader market declined over 1%, Texas Pacific's stock managed to close 0.6% higher, demonstrating resilience in a challenging market environment and boosting investor confidence in its future performance.
- Resource Advantage: The analyst highlighted the company's substantial potential for developing power generation and data center facilities on its land, particularly given the surging demand for artificial intelligence technology, with Texas Pacific possessing ample land and water resources to support such facilities.
- Market Opportunity: While the company is expected to continue generating most of its revenue from traditional energy tenants, the analyst believes that the opportunity in data center construction will become a significant growth driver for Texas Pacific, suggesting that the company will eagerly capitalize on this market opportunity.
See More
US Stocks Plunge Sharply as Market Risk Sentiment Intensifies
- Market Downtrend: The S&P 500 index fell by 1.20%, the Dow Jones Industrial Average dropped by 1.58%, and the Nasdaq 100 index decreased by 1.47%, reflecting a risk-off sentiment triggered by uncertainty over U.S. trade policy.
- Trade Policy Impact: President Trump signed an executive order raising global tariffs from 10% to 15%, a move that may curb global economic growth and exacerbate downward pressure on the markets.
- Software Stocks Under Pressure: Concerns over AI impacts led to a more than 9% drop in CrowdStrike and other software stocks, which not only affected the market capitalization of these companies but also negatively influenced overall market sentiment.
- Economic Data Performance: The U.S. January Chicago Fed National Activity Index rose by 0.39 to 0.18, exceeding expectations and indicating potential improvement in economic activity, yet the market remains cautious ahead of upcoming corporate earnings and economic data releases.
See More
US Stocks Decline Amid Trade Policy Uncertainty
- Market Decline: The S&P 500 Index fell by 0.22%, the Dow Jones Industrial Average by 0.24%, and the Nasdaq 100 by 0.66%, reflecting heightened risk-off sentiment due to uncertainty over U.S. trade policy, which may undermine investor confidence.
- Tariff Increase Impact: President Trump's executive order raising global tariffs from 10% to 15% could suppress global economic growth, negatively impacting the stock market, particularly in trade-sensitive sectors, as investors reassess risk exposure.
- Earnings Outlook: Despite the overall market decline, over 80% of S&P 500 companies have reported earnings, with 74% exceeding expectations, indicating resilience in corporate earnings, and S&P earnings growth is projected to reach 8.4% in Q4.
- Economic Data Focus: The market will closely monitor upcoming economic data, including consumer confidence index and initial jobless claims, as these figures will influence the Fed's interest rate decisions, further impacting stock market trends.
See More
Top Performing Large-Cap Stocks Last Week
- First Majestic Silver Surge: First Majestic Silver Corp. saw a 25.23% increase this week after reporting better-than-expected fourth-quarter adjusted EPS results, indicating strong profitability in the silver mining sector that may attract more investor interest.
- Omnicom Buyback Announcement: Omnicom Group Inc. rose 22.52% this week following better-than-expected Q4 sales results and the announcement of a $5 billion stock buyback plan, which is expected to enhance shareholder returns and boost market confidence.
- Garmin's Strong Financials: Garmin Ltd. jumped 18.66% this week after reporting fourth-quarter financial results that exceeded expectations and issuing FY26 guidance above estimates, suggesting ongoing growth potential in the smart device market.
- Pan American Silver's Recovery: Pan American Silver Corp. soared 15.54% this week after its fourth-quarter financial results surpassed expectations, reflecting robust performance in silver mining that could drive its future market performance.
See More
US Economic Slowdown and Tariff Ruling Impact Markets
- Economic Slowdown: The US economy expanded at an annualized rate of only 1.4% in Q4, a significant drop from 4.4% in the previous quarter and well below the expected 3%, indicating a fragile recovery that could dampen market confidence.
- Accelerating Inflation: The Federal Reserve's preferred inflation gauge rose to a 3% annual rate in December, with a monthly increase of 0.4%, marking the fastest pace since February, which may prompt the Fed to adopt a more cautious approach in future monetary policy.
- Tariff Authority Ruling: The Supreme Court ruled that the president lacks the authority to impose tariffs under the International Emergency Economic Powers Act, emphasizing that only Congress has this power during peacetime, potentially leading to litigation over the refund of over $130 billion in tariffs already collected, increasing policy uncertainty.
- Widening Trade Deficit: The US goods and services deficit widened to $70 billion in December, with the full-year 2025 trade gap remaining at $901 billion, indicating that tariff policies have failed to effectively narrow the trade imbalance, which could impact the government's economic policy direction.
See More
