Mizuho Raises Texas Instruments (TXN) Price Target on Strong AI Server Demand

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 10 High Quality Stocks to Buy According to Hedge Funds.

Mizuho Raises Texas Instruments (TXN) Price Target on Strong AI Server Demand

On May 19, Mizuho raised its price recommendation on Texas Instruments Incorporated (NASDAQ:TXN) to $300 from $255. It reiterated a Neutral rating on the shares. The firm increased price targets across the semiconductor sector after reviewing the impact of AI data centers on the analog and memory markets. According to the analyst, channel checks showed that analog chips continue to benefit from AI server ramp-ups. Memory markets are also seeing continued strength across NAND and DRAM due to growing AI server demand. Mizuho expects supply conditions to remain tight through the first half of 2027 and pointed to a potential Samsung strike as another factor to watch.

During the company’s Q1 2026 earnings call, CEO Haviv Ilan highlighted Texas Instruments’ agreement to acquire Silicon Labs as a major strategic move. He said the transaction was expected to close in the first half of 2027, subject to regulatory approvals.

CFO Rafael Lizardi said the company reported net income of $1.5 billion, or $1.68 per share, for the quarter. He added that earnings per share benefited by $0.05 from items not included in the company’s original guidance, primarily related to discrete tax benefits.

Discussing shareholder returns and the company’s balance sheet, Lizardi said Texas Instruments paid $1.3 billion in dividends and repurchased $158 million worth of shares during the quarter. He also noted that the company maintained a strong balance sheet, supported by $5.1 billion in cash and short-term investments.

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, tests, and sells analog and embedded processing chips. Its products are used across industrial, automotive, personal electronics, communications equipment, and enterprise systems markets.

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