Shares jumped 4.2% to $314.46 on June 18, reclaiming ground lost during two soft sessions and capping a 60% gain over the past year. The catalyst: a wave of Wall Street upgrades betting that data-center power demand will keep filling TI's order books — even as the stock now trades well above the average analyst price target.
• Three Major Firms Raised Their Targets in Weeks, Signaling a Shift in Sentiment
Citi lifted its price target to $345 from $280, driven by rising demand in data centers.
Bank of America raised its target to $370 from $320, keeping a Buy rating , while Seaport Research upgraded TXN to Buy with a $400 target — the Street high , citing expectations for increased market share in the data-center power segment beginning in the latter half of 2026, underpinned by strong compound annual growth in demand for analog and power semiconductors. With three high-conviction calls in rapid succession, momentum traders piled in.
• Q1 Results Gave the Bulls Real Ammunition
TI posted Q1 revenue of $4.8 billion, up 19% year over year, with earnings per share of $1.68 — 23% above consensus — and guided Q2 revenue to $5.0–$5.4 billion, above prior expectations.
Data-center revenue tied to AI infrastructure reached over $1.5 billion in 2025 and now represents 9% of total sales. That slice is small but growing fast — and it's the piece analysts are repricing.
• The Broader Chip Boom Provides a Rising Tide
The global semiconductor industry is expected to reach $975 billion in annual sales in 2026, a historic peak fueled by AI infrastructure spending, with growth projected at 26%.
Counterpoint Research noted AI chip demand has pushed manufacturing capacity to its limits, with demand still significantly outpacing supply. TI benefits indirectly: every AI server needs dozens of its analog power-management chips alongside headline processors.
• The Stock's Price Already Outruns the Consensus At $314, TXN trades above the consensus analyst target of roughly $290 , meaning the market is already pricing in the optimistic scenario. Automotive — once a core growth pillar — faces near-term softness from tariffs and interest rates. If data-center momentum stalls or industrial recovery disappoints, today's buyers are left paying a premium with limited downside cushion.
The bottom line: TI's fundamentals are genuinely improving, but the stock has sprinted ahead of the average forecast. Investors are betting on where the numbers are going, not where they are.