Benchmark Raises Texas Instruments Price Target to $315

Benchmark analyst Cody Acree raised the price target on Texas Instruments (NASDAQ: TXN) to $315.00 (from $250.00) while maintaining a Buy rating.

“TXN shares traded up about 10% after hours as the company again delivered a significant revenue and EPS beat and raise, by about $300-$335M and $0.32-$0.34, respectively.

However, even with TI’s demand building strength progressively through the quarter as bookings and backlog gained momentum, the central market debate remains the durability of the current cyclical demand strength, particularly as the Street was quick to ask if this is another first-half head fake, similar to last year, or the start of a more durable analog recovery.

We tend to lean toward the latter, particularly given the markets consistently improving demand signals across a mix of end markets, both AI levered, and those more economically diverse.

What mattered most to us was the breadth of its Industrial acceleration, which grew more than 30% annually and 20% sequentially, another quarter of exceptional Data Center growth, up 90% Y/Y and greater than 25% Q/Q, flat Q1 pricing versus TI’s normal Q1 declines, and management’s repeated emphasis that TI can support a much stronger upcycle with available capacity, internal inventory and short, stable lead times.

As we believe the company is one of the best positioned large cap semiconductor companies to take full advantage of a broadening and maturing industry up-cycle, we reiterate our Buy rating and are raising our price target to $315 from $250, 36.8x our new FY27 EPS $8.57, or 0.9x our estimated FY26 EPS growth rate of 41%.”

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