New York, May 30, 2026, 17:01 EDT
Texas Instruments (TXN.O) slid sharply Friday, trimming gains from earlier in the week that sent the analog chip company to a new 52-week high just two days before. The move closed out a holiday-shortened week for TI.
The stock finished Friday at $305.68, off 3.25%. The S&P 500 added 0.22%, the Nasdaq was up 0.20%. Volume hit 16.79 million shares, running more than twice what was seen earlier this week.
Texas Instruments is now seen as a play on demand for power chips in AI data centers, rather than just an industrial-cycle name. U.S. markets were shut Monday for Memorial Day, so in four trading days TXN rallied 5.07% Tuesday, touched $331.51 Wednesday, and dropped the next three sessions.
By the end of trading Friday, the stock was down about 7.8% from its high on Wednesday and 1.1% off its May 22 close. Not a rout, more of a reset after a sharp run.
Texas Instruments isn’t looking so dull to some on Wall Street these days. Stacy Rasgon, senior semiconductor analyst at Bernstein, told investors at the firm’s conference Thursday that TI’s long capacity-expansion push is nearing its end, and cash generation is back in the spotlight. Rasgon said the company had once been “the boring semiconductor company” but is “less boring lately.” Seeking Alpha
BofA analyst Vivek Arya outlined the bullish argument this week. Arya said in a note, as reported by Investing.com, that core industrial and auto markets had “finally turned the corner.” Bank of America lifted its Texas Instruments target to $370 from $320, and also listed Analog Devices and ON Semiconductor as top analog-chip picks for AI power demand. Investing.com
Analysts are zeroing in on the term “800-volt data-center architecture,” meaning higher-voltage setups built for better power flow across AI server facilities. BofA sees Texas Instruments’ data-center revenue hitting roughly $4.5 billion by 2028, which could be up to 18% of total sales as voltage regulators and gallium nitride chips pick up use. Investing.com
Seaport Research Partners played a part in the action too. Last week, Barron’s said Seaport lifted Texas Instruments to “Buy” from “Neutral” and set a $400 price target. Analyst Jay Goldberg called TI the “most diversified single-name way” to play the AI data-center power shift. Barron’s
Texas Instruments delivered numbers that fueled some of the optimism. The chipmaker posted $4.83 billion in first-quarter revenue, with net income of $1.55 billion and earnings per share at $1.68. CEO Haviv Ilan said “industrial and data center” drove growth. TI projected second-quarter revenue between $5.00 billion and $5.40 billion. Texas Instruments
Chip stocks held steady this week, shrugging off a drop in TXN late in the week. The iShares Semiconductor ETF finished Friday at $569.08, with barely any move on the day. That’s still ahead of the $537.33 level from May 22. Texas Instruments took more of a hit than the group as a whole as selling picked up toward the end of the week.
But the risk is pretty clear. MarketScreener data puts the average analyst target at $290.33, which is under Friday’s close, even though most have an “outperform” rating. If industrial orders slow down again, or auto demand drops, or AI power-chip sales take longer to boost revenue, the stock could have trouble hanging on to its premium multiple. MarketScreener
Cyclicals get a test next week as key macro data hits. Investors have U.S. ISM manufacturing on Monday and services on Wednesday; a PMI above 50 signals growth. Friday brings the U.S. jobs report and Broadcom earnings. Traders get fresh looks at rates, demand, and chips.
Texas Instruments right now is moving on two themes. There’s the upturn in industrial and auto chips, and there’s the recent AI-linked momentum that’s brought new analyst attention. On Friday, the AI angle proved volatile for the stock.
