Cantor Fitzgerald Reiterates Neutral Rating on Texas Instruments

Cantor Fitzgerald analyst Matthew Prisco reiterated a Neutral rating and $300.00 price target on Texas Instruments (NASDAQ: TXN).

“Last night, we had the pleasure of hosting a dinner with TI’s Mike Beckman, Mike Pienovi, and Christine Witzsche.

Clear focus, in our view, was centered around three topics: 1) cyclical positioning; 2) data center opportunity; and 3) capacity implications. On the cycle, lead times for TI remain stable; pricing in 2Q should be flattish (potentially up in 2H as mgmt. remains strategically focused on working to adjust to the right price point; note letter on May 7th indicating price increase effective July 1st), and still no signs of broad-based restocking.

On the Data Center (DC) opportunity, this biz already hit 12% of total company revs in 1Q, and is likely to surpass the company’s Personal Electronics biz in the not-so-distant future, based on continued strong growth (TAM growing +65% in CY26).

Here, we remind investors that a little over half of the company’s DC biz is power-related, with mgmt. noting particular leverage to stage 2 and the 800V transition where TI sees opportunity to play a greater role in high voltage.

Lastly on capacity, TI remains well-positioned to support upside moving forward, with no change in capex/depreciation forecasts at this point.

Overall, we came away from the meeting excited about TI’s opportunity from here, as Data Center growth (which we are becoming increasingly positive around) bolsters the underlying Analog growth trajectory, with ample supply to support demand.

The bull case here centers around DC power exposure, in-house capacity advantages, and FCF inflection – which we get.

But with the stock trading >30x our vision for FCF of $10 in CY27, coupled with >50% of revs coming from Auto/PE, we just see better relative upside elsewhere today.

As such, we reiterate our Neutral rating.”

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