Seaport Research Partners upgraded Texas Instruments (TXN) to Buy from Neutral on Friday. The firm set a new price target of $400 for the stock.
Growing power demands in artificial intelligence data centers drive the rating change. Analysts expect this trend to trigger a surge in demand for power analog semiconductors. Re-architecting electricity distribution within these facilities will likely expand the market and improve profit margins.
Texas Instruments shares increased 1.5% in premarket trading following the announcement. The company remains well-positioned due to its broad power-related semiconductor portfolio and gallium nitride (GaN) platform. This upgrade occurs as the stock trades at an all-time high.