Shares of Texas Instruments (TXN) are at an all-time high as the stocks of U.S. chipmakers soar.
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TXN stock reached a record high of $309.40 in afternoon trading on May 14, marking a major milestone for the semiconductor company. In the last six months, Texas Instruments’ share price has risen 95%, including a 41% gain in the past month alone.
TXN stock is rising along with the entire chip sector as investors turn back to the artificial intelligence (AI) trade. Stocks of other leading chipmakers such as Intel (INTC) and Advanced Micro Devices (AMD) have seen their share prices more than double this year.
Texas Instruments AI Play
Until recently, Texas Instruments had largely been left out of the AI rally as most of its semiconductors are used in household appliances and motor vehicles rather than data centers. However, Texas Instruments announced earlier this year that it is acquiring microchip designer Silicon Laboratories (SLAB) for $7.5 billion.
Texas Instruments said the deal will expand its footprint in wireless connectivity microchips that are used for industrial applications, including AI data centers. The purchase of Silicon Laboratories is Texas Instruments’ biggest acquisition since its $6.5 billion purchase of National Semiconductor in 2011.
Is TXN Stock a Buy?
Texas Instruments’ stock has a consensus Moderate Buy rating among 24 Wall Street analysts. that rating is based on 14 Buy, eight Hold and two Sell recommendations issued in the last three months. The average TXN price target of $280.43 implies 9% downside from current levels.
