Bank of America has revised its outlook for Texas Instruments, raising its price target to $220 following a projection that 2026 marks the midpoint of the AI infrastructure buildout cycle. The firm sees sustained demand for semiconductors supporting data centers and edge computing driving long-term growth.
- Bank of America projects 2026 as midpoint of AI infrastructure buildout cycle
- Texas Instruments (TXN) price target raised to $220 from $190
- Q3 2025 industrial and automotive revenue growth: 12% year-over-year for TXN
- Increased demand for power management, analog, and embedded chips in AI systems
- Pre-market stock rise of 4.3% for TXN following announcement
- Broader implications for analog semiconductor suppliers with AI exposure
Bank of America has upgraded its investment stance on Texas Instruments (TXN), raising its price target to $220 from $190, citing a strategic inflection point in the global AI infrastructure expansion. The firm now estimates that 2026 will represent the halfway mark of this multi-year buildout, indicating that demand for high-performance semiconductor components will remain robust through the mid-2020s. This projection is anchored in ongoing capital spending by hyperscalers and enterprises to scale AI-driven workloads, necessitating advanced power management, signal processing, and analog chips—core competencies of Texas Instruments. The bank’s analysis highlights that AI infrastructure deployment is entering a second phase, characterized by deeper integration across data center architectures and broader adoption in industrial and automotive applications. Texas Instruments’ diversified product portfolio, particularly in power semiconductors and embedded processors, positions the company to capture a growing share of this ecosystem. Historical data shows Texas Instruments’ revenue from industrial and automotive segments grew by 12% year-over-year in Q3 2025, outpacing the broader semiconductor market. Market implications include a near-term boost in investor sentiment for analog and infrastructure-focused semiconductor firms. Texas Instruments’ stock has responded positively, rising 4.3% in pre-market trading following the announcement. The move may also influence other semiconductor suppliers with similar exposure to data-intensive applications, such as Analog Devices and Infineon Technologies, which could see renewed institutional interest.