Shares jumped as Seaport Research analyst Jay Goldberg upgraded Texas Instruments from Neutral to Buy with a $400 price target — the Street's most bullish call on the stock — arguing that an overhaul of how data centers deliver electricity will funnel billions in new demand toward TXN's power chips. At $313.34, the stock is up 5% on the day, dramatically outpacing the broader tech sector's 0.85% gain, and hitting fresh 52-week highs.
• Data Centers Are Rewiring, and TXN Sells the Parts
Analyst Goldberg argued that rising power demand per server rack is pushing data centers toward 800-volt DC electrical systems, replacing traditional 480-volt setups for better efficiency.
He estimates this transition will expand the market for power analog chips — the semiconductors that regulate and convert electricity — from roughly $5 billion today to $15 billion by 2030.
Seaport believes TXN is best positioned to capture that growth thanks to its broad power chip lineup and its investments in gallium nitride, a next-generation chip material.
• The Numbers Already Back the Thesis — For Now
In Q1 2026, TXN's data center revenue grew about 90% year-over-year and more than 25% sequentially, making it the company's fastest-growing segment.
Total revenue hit $4.83 billion (+19% YoY), with net income rising 31% to $1.55 billion.
Analysts now peg 2026 revenue at $20.75 billion, implying roughly 17% full-year growth.
• The Price Tag Is Getting Expensive
TXN trades at a forward price-to-earnings ratio of roughly 37.6x, well above the semiconductor industry average of 28x.
Even before today's pop, the stock was up 70% over the past year, and some valuation models flagged it as overvalued. Seaport's $400 target implies another 28% of upside — far above the average analyst target of $285.
• Insiders Are Heading for the Exit
Company insiders sold $85.7 million in stock over the last three months — a notable signal when Wall Street is telling investors to buy. TXN has also implemented a second round of price hikes this year, effective July 1 , which could support margins but may test customer loyalty if the cycle turns.
The bottom line: TXN's AI power story is real and accelerating. But with the stock priced for perfection and insiders cashing out, the market is betting that a three-times expansion in power chip demand will arrive on schedule — and that TXN will own the lion's share.