TEXAS INSTRUMENTS SHARES ADVANCED: Texas Instruments shares rose 4.6% in morning trading to $323.40, touching a fresh 52-week peak of $324.19 after Bank of America increased its price target on the chipmaker to $370 from $320 and spotlighted the company as a leading pick in the AI power semiconductor arena. BofA’s note emphasized the industry’s accelerating transition to 800-volt data center architecture as a key structural driver for demand.
BofA’s price-target increase to $370 from $320 was reported the evening before the trading session that produced today’s gains. The bank singled out Texas Instruments’ data center business, which it said generated approximately $1.5 billion in 2025 with year-over-year growth of 64%, and projected that the unit could expand to roughly $4.5 billion by 2028, potentially accounting for as much as 18% of company-wide sales.
ANALYST SUPPORT AND RECENT UPGRADES: The BofA note arrived on the heels of other analyst moves that have bolstered investor conviction. On May 22, Seaport Research analyst Jay Goldberg upgraded Texas Instruments to Buy from Neutral and set a $400 price target, citing rising data center power consumption and increased electrical intensity per rack. Earlier, on May 19, Mizuho raised its price target on the stock to $300 from $255 while maintaining a Neutral rating.
These analyst actions follow TXN’s strong operational performance in the most recent quarter. In Q1 2026, Texas Instruments reported revenue of $4.83 billion, an 18.7% increase, while earnings per share rose 31.3% to $1.68. Both revenue and EPS comfortably beat expectations, providing the fundamental backdrop for the new round of analyst optimism.
MARKET CONTEXT: The move in Texas Instruments occurred within a constructive broader market environment: the S&P 500 was up 0.6%, the Nasdaq rose 1.0%, and the Dow gained 0.1%. The semiconductor sector as a whole is benefiting from strong momentum. Global chip sales rose sharply in Q1 2026 and robust AI-driven demand has contributed to a supply-limited market outlook, which analysts say could sustain favorable conditions for suppliers of power analog components.
BofA named Analog Devices and ON Semiconductor alongside Texas Instruments in its note. Those companies also saw gains consistent with the sector tailwind, with the published intraday moves showing Analog Devices up 6.23%, Texas Instruments up 5.09%, and ON Semiconductor up 9.94% at the referenced trading snapshot.
SELF-REINFORCING RALLY: Market observers point to a confluence of forces driving the stock higher: elevated-conviction analyst price-target upgrades, a sector-wide embrace of the AI power semiconductor theme, and TXN’s recent record quarter. The narrative centers on Texas Instruments’ growing exposure to data center and AI demand, alongside recovery in industrial end markets and continued capital investment in manufacturing capacity. Today’s jump to a 52-week high underscores growing market confidence in TXN’s multi-year growth trajectory as characterized by analysts.
Summary
Texas Instruments rose sharply after Bank of America raised its price target to $370 and highlighted the company as a top pick for AI-related power semiconductors tied to 800-volt data center architecture. The company’s strong Q1 2026 results and a series of analyst upgrades contributed to the rally, which occurred amid a broadly positive market and a chip sector benefiting from AI-driven demand.
Key points
- Bank of America raised its TXN price target to $370 from $320, citing the shift to 800-volt data center designs and naming the company a top pick in AI power semiconductors.
- Texas Instruments’ data center business produced about $1.5 billion in 2025 with 64% year-over-year growth and could reach roughly $4.5 billion by 2028, or up to 18% of total sales, according to BofA.
- Other analysts have recently increased conviction in the name - Seaport Research upgraded TXN to Buy with a $400 target on May 22, and Mizuho raised its target to $300 from $255 on May 19 while keeping Neutral.
Risks and uncertainties
- Analyst expectations underpin the rally - further market or analyst sentiment shifts could reverse gains; this affects investors in semiconductor and hardware-related sectors.
- TXN’s future contribution from data center sales is a projection - whether the data center business reaches the cited $4.5 billion by 2028 remains uncertain, impacting the company’s revenue mix and valuations.
- Sector dynamics such as supply and demand in the semiconductor market are evolving - while current demand is strong, the market environment could change and influence broader chip suppliers named in the note.
Note: The article focuses on reported analyst actions, Texas Instruments’ disclosed quarterly results, and cited market movements. It reflects information provided by analysts and company results as described in the available reporting.