Analyst Ratings January 28, 2026

Mizuho Lifts Texas Instruments Price Target to $160 but Keeps Underperform Call

Firm cites stronger bookings and data center strength for higher target, yet flags valuation stretch and trims estimates ahead of capital-market event

By Maya Rios TXN
Mizuho Lifts Texas Instruments Price Target to $160 but Keeps Underperform Call
TXN

Mizuho raised its 12-month price target for Texas Instruments (TXN) to $160 from $145 while retaining an Underperform rating. The firm pointed to improving bookings and above-seasonal March-quarter guidance, driven by Industrial and Data center strength. Despite the higher target, Mizuho lowered its estimates and emphasized valuation concerns as reasons to keep a cautious stance.

Key Points

  • Mizuho raised its price target on Texas Instruments to $160 from $145 while keeping an Underperform rating.
  • December-quarter revenue was in line with consensus at $4.4 billion; March-quarter guidance of $4.5 billion is a 2% sequential increase and slightly above consensus.
  • Data center revenue is now about $450 million per quarter, roughly 10% of total revenue, with catalysts including server Vcore CPU, power rail, VRM, and signal chain applications.

Mizuho has increased its price objective on Texas Instruments (NASDAQ: TXN) from $145.00 to $160.00, yet the investment bank maintained an Underperform rating on the shares.

The firm highlighted that Texas Instruments' December-quarter revenue matched consensus at $4.4 billion. Management guided the March quarter to revenue of $4.5 billion, representing a 2% sequential rise and edging slightly ahead of consensus expectations of $4.4 billion.

Mizuho pointed to improving bookings as the principal driver lifting March-quarter performance above typical seasonal patterns. The firm noted that Texas Instruments' seasonal trends have historically been flat to down by low-single-digits quarter-over-quarter, making the company’s current guidance notable. Mizuho identified strength in the Industrial and Data center end markets as contributors to the better-than-seasonal outlook.

Within the Data center franchise, Mizuho described growth that has brought that business to roughly $450 million per quarter, which is about 10% of the company’s overall revenue. The bank listed specific catalysts supporting the data center expansion, including demand for server Vcore CPU components, power rail elements, voltage regulator modules (VRMs), and signal chain applications.

Although Mizuho lifted the price target, the firm left its Underperform rating intact, citing valuation concerns. The broker indicated that Texas Instruments trades at approximately 32 times earnings, which Mizuho regards as stretched versus the peer-group average of about 26 times earnings. Ahead of Texas Instruments’ Capital Management Day scheduled for February 24, the firm said it has adjusted its estimates to be below consensus.

Separately, Texas Instruments reported fourth-quarter 2025 financial results that missed analyst forecasts by small margins. The company disclosed earnings per share of $1.27, narrowly under the expected $1.29, and revenue of $4.42 billion, slightly below the anticipated $4.45 billion. These results reflect a modest shortfall in both earnings and revenue relative to projections. The report attracted attention from investors and analysts, though no analyst upgrades or downgrades were noted in connection with the release.

In sum, Mizuho’s revised target reflects more positive near-term demand signals, particularly in Industrial and Data center end markets, while the bank’s rating and estimate reductions underscore ongoing concerns around valuation and the need for clarity at the company’s upcoming capital-markets event.

Risks

  • Valuation risk - Texas Instruments trades at about 32x earnings versus a peer average of roughly 26x, a factor behind Mizuho's continued Underperform rating.
  • Earnings and revenue miss risk - Q4 2025 results showed slight misses in EPS ($1.27 versus $1.29 expected) and revenue ($4.42 billion versus $4.45 billion expected), introducing near-term execution uncertainty.
  • Guidance reliance - March-quarter strength depends on improving bookings and end-market demand, particularly in Industrial and Data center sectors; these trends may not be sustained.

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