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BofA Sees 2026 as Midpoint of AI Infrastructure Cycle, Lifts TXN Target

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

On December 16, BofA analyst Vivek Arya raised the firm’s price target on Texas Instruments Incorporated (NASDAQ:TXN) to $185 from $175, while maintaining an Underperform rating on the stock. The update reflects a broader refresh of price targets across BofA’s US semiconductor coverage. The firm views 2026 as the midpoint of an eight- to ten-year cycle focused on upgrading traditional IT infrastructure to support faster, AI-driven workloads.

Near-term trading may remain volatile as investors scrutinize AI returns and hyperscaler cash flows. BofA believes this uncertainty could be partially offset by continued momentum from large language model developers and the buildout of AI-focused manufacturing capacity.

In other news, on December 17, Texas Instruments Incorporated (NASDAQ:TXN) announced the start of production at its newest 300mm semiconductor fabrication facility in Sherman, roughly 50 miles north of Dallas. The plant is part of a long-term investment plan totaling about $40 billion, first outlined three years ago.

The facility, known as SM1, will ramp production in line with customer demand. At full scale, it is expected to produce “tens of millions of chips daily that go into nearly every electronic device,” including smartphones, automotive systems, medical devices, industrial equipment, smart home products, and data centers.

The production launch comes amid a broader expansion in artificial intelligence, semiconductor manufacturing, and data center construction, with increasing activity centered in North Texas.

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors, with a core focus on analog and embedded processors.

While we acknowledge the potential of TXN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TXN and that has a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Long Term US Stocks to Buy Now and 12 Best Dogs of the Dow to Invest in.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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