NEW YORK, May 16, 2026, 14:04 (EDT)
Texas Instruments ended the week higher, shrugging off Friday’s chip selloff. Investors are now weighing whether the analyst-driven rally still has legs, or whether the stock has jumped too far, too fast.
Texas Instruments closed Friday at $302.73, down 1.77% on the session. The Dallas-based chipmaker was still about 5.2% above its May 8 close. The stock touched $310.29 in Thursday’s session, according to the company’s Refinitiv-powered historical quote page.
U.S. stocks finished lower Friday as oil prices and bond yields rose, putting inflation concerns back in focus. The S&P 500 dropped 1.24% and the Nasdaq fell 1.54%. Chip exchange-traded funds fell harder. The iShares Semiconductor ETF was down 3.92%, and VanEck Semiconductor ETF shed 3.86%.
Stifel raised its price target on Texas Instruments to $340 from $290 after meeting with the company’s investor relations. Analyst Tore Svanberg’s team said the recovery story is gaining momentum and described the shift as one from “patient cycle-waiting” to “active recovery validation.” They cited a broader industrial upturn and a data-center segment running at roughly a $2 billion annualized rate. StreetInsider.com
Texas Instruments makes analog chips used for jobs like managing power, temperature and sound, and it designs embedded processors that go into factory machines, cars, data centers and electronics. So the stock isn’t just a play on artificial intelligence. It’s also a way to track what’s happening in industrials, autos and how customers manage their inventories.
The rally has been driven by stronger Q1 numbers. TI reported first-quarter revenue of $4.83 billion and net income of $1.55 billion. Earnings per share were $1.68. For the second quarter, Texas Instruments projected revenue of $5.00 billion to $5.40 billion and EPS of $1.77 to $2.05.
On the April call, Chief Executive Haviv Ilan told analysts industrial saw sequential growth across sectors and geographies. He said he expects industrial and data center to drive second-quarter growth, but that it’s “too soon to call” on auto demand. Texas Instruments
Bank of America analyst Vivek Arya changed his view after the earnings report. “The guide was better than even our most bullish scenarios,” Arya told TheStreet. Bank of America raised its rating on Texas Instruments to Buy and lifted its price target to $320 from $235, TheStreet reported. TheStreet
Cash flow is also in focus. Free cash flow, which TI defines as cash left after operations and factory outlays plus CHIPS Act incentives, was $4.35 billion over the past 12 months. CFO Rafael Lizardi said it’s improving as “growth returns and CapEx begins to moderate,” referring to capital spending on plants and equipment. Texas Instruments
Chip peer stocks were lower Friday. Monolithic Power Systems dropped 3.96%, Analog Devices fell 2.18% and NXP Semiconductors lost 0.91%. Texas Instruments was in the middle, down 1.77%.
Texas Instruments executives made fresh insider filings going into the weekend. SEC Form 4 filings released Friday showed CFO Rafael Lizardi exercised 47,734 options and sold all of those shares on May 14 at weighted averages near $308. Senior Vice President Ahmad Bahai also exercised and sold 5,000 shares.
Company events look quieter in the week ahead. TI will pay its $1.42 dividend on Tuesday, May 19, to investors who held shares by May 5. Ilan is due next at the Bernstein conference in New York on May 28.
But the risk is hard to ignore. If most of the industrial bounce is just inventory restocking rather than true demand, or if data-center orders ease, the stock may have trouble staying above $300 after its quick climb. TI already flagged risks including swings in demand, customers changing inventory, tighter pricing and pressure on margins, all of which could mean actual results differ from what management expects.
