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Arete upgrades Texas Instruments to Buy, lifts price target to $405
The firm cited Texas Instruments' Q2 results, including 23% year-over-year revenue growth to $5.46 billion and a data center income surge tied to AI buildouts and analog supply constraints.
Texas Instruments shares got a boost after Arete Research upgraded the analog chipmaker to Buy from Neutral and raised its price target to $405 from $303, a 34% increase, following what the firm described as a strong quarter.
In that quarter, Texas Instruments reported Q2 revenue of $5.46 billion, up 23% year over year and above the $5.24 billion consensus, while earnings per share rose 52% year over year to $2.14, beating the $1.92 Street estimate, according to Yahoo Finance.
Arete pointed to growth in data center income driven by AI demand and projected that analog semiconductor shortages could last for three years, arguing Texas Instruments is positioned to benefit through capacity that may enable market share gains.
The research also tied the setup to longer-term drivers, including expectations of revenue around $34 billion and earnings of $17 per share by fiscal 2028, alongside a six-year, roughly $24 billion fab expansion that has constrained free cash flow, with 2026 capex projected at $2 billion to $3 billion.