The Market Thinks Texas Instruments (TXN) Is a Boring Analog Chipmaker; AI Data Centers Disagree

Arete Research upgraded Texas Instruments (TXN) to Buy, raising its price target due to surging AI demand driving analog semiconductor shortages. The company's Q2 revenue and EPS beat expectations, with significant growth in data center income. Despite a recent 60% stock climb and a high forward earnings multiple, the investment thesis holds due to TXN's critical role in AI data center power and an impending surge in free cash flow as fab expansion spending declines.