NEW YORK, May 22, 2026, 13:02 EDT
- Texas Instruments rose roughly 5.7% after Seaport Global lifted its rating to Buy and set a price target of $400.
- U.S. stocks gained, with chip shares up as well. The Philadelphia semiconductor index added 2.4%.
- TI’s power-management chips are showing up as a cleaner AI data center trade, with investors using them to play the jump in electricity demand.
Texas Instruments shares climbed Friday, trading close to a 52-week high. Seaport Global boosted its rating on the analog-chip maker to Buy from Neutral and gave the stock a $400 price target.
The shares changed hands at $315.34, up 5.7% as of 1:02 p.m. EDT. That move turned around Thursday’s drop and added to one of the bigger rallies in major U.S. chip stocks this year. MarketScreener said the upgrade was out before the bell, with the shares up over 80% year-to-date.
Why now: Investors are starting to move past Nvidia and its AI processors. Texas Instruments doesn’t make the main graphics chips that handle AI training, but it does sell analog chips. These components manage power and convert physical electrical signals into data. Customers use them in everything from industrial machines to cars and data centers.
TXN has started to see gains from the AI build-out later than others. Reuters reported the Philadelphia semiconductor index was up 2.4% on Friday. The S&P 500 posted a 0.65% gain and the Nasdaq added 0.67% at 11:34 a.m. ET. Traders were also getting ready for markets to close for Memorial Day on Monday.
Seaport’s Jay Goldberg said data centers are being driven to change how they handle electricity as both power needs and power per rack keep rising. He pointed to 800-volt systems, meant to help move more power inside AI server rooms, as a potential boost for power analog chips. Goldberg said these higher-voltage setups are coming, but broad rollouts will take time.
Seaport says the analog chip market tied to AI data center power could hit $15 billion by 2030, up from around $5 billion now, Barron’s reported. That drove analog and power chip stocks, with Analog Devices and ON Semiconductor both rising.
Texas Instruments posted first-quarter revenue of $4.83 billion, with net income of $1.55 billion and EPS of $1.68. The chipmaker put second-quarter revenue guidance at $5.00 billion to $5.40 billion. CEO Haviv Ilan said sales gains were “led by industrial and data center.” Texas Instruments
Texas Instruments’ analog unit covers power chips for converting, distributing, storing, and measuring electrical energy, according to a Reuters profile. The embedded-processing chips are designed for focused tasks in electronics. TI’s business stretches from slow industrial cycles to rising power demand in data centers.
The trade has some risk. TXN is trading at about 51 times trailing earnings. Seaport’s call leans on power-architecture decisions that won’t hit revenue for a while. If AI spending slows down, rates go up or the wider market stumbles, shares could fall fast. Thomas Hayes, chairman at Great Hill Capital, told Reuters, “the market will catch down very quickly” if the market’s bet on a near-term geopolitical fix is wrong. StockAnalysis
Looking to the week ahead, the next event on the schedule is TI CEO Haviv Ilan’s slot at Bernstein’s Strategic Decisions Conference on May 28. Traders will watch to see if Ilan pushes the AI angle or sticks to TI’s standard messages of industrial recovery, cash flow, and manufacturing scale.
