TI's Data Center Surge: Stifel Upgrades Stock

Stifel upgraded Texas Instruments (TXN) to a buy rating, citing substantial growth potential in its data center business and continued strength in analog products. The investment firm raised its price target for TXN shares to $250, suggesting a nearly 20% upside from recent trading levels. This upgrade follows an extended investment period that previously constrained profitability.

Texas Instruments recently acquired Silicon Laboratories for $7.5 billion, a move aimed at expanding its presence in wireless connectivity chips used in smart appliances and vehicles. Stifel's analysis indicates this acquisition could be more accretive than initially projected, potentially increasing earnings per share by over 10.5% by 2030.

The company's data center segment is also a key growth driver, with orders reportedly increasing by 70% in 2025 compared to the previous year. Texas Instruments is also developing new power solutions for next-generation AI data centers. The firm anticipates its data center segment could represent 20% of total sales by 2028 or 2029.

Furthermore, Stifel believes Texas Instruments is well-positioned to capture increased market share in its analog hardware business. Previous capacity constraints had limited its ability to capitalize on market upturns. The company's ongoing investment in 300mm capacity expansion is expected to enhance its competitive standing and analog market share.