BofA Sees 2026 as Midpoint of AI Infrastructure Cycle, Lifts TXN Target

Texas Instruments Incorporated (NASDAQ:TXN) is included among the 13 Top Tech Stocks Paying Consistent Dividends.

On December 16, BofA expert Vivek Arya raised the firm’s terms people connected Texas Instruments Incorporated (NASDAQ:TXN) to $185 from $175, portion maintaining an Underperform standing connected the stock. The update reflects a broader refresh of terms targets crossed BofA’s US semiconductor coverage. The steadfast views 2026 arsenic the midpoint of an eight- to ten-year rhythm focused connected upgrading accepted IT infrastructure to enactment faster, AI-driven workloads.

Near-term trading whitethorn stay volatile arsenic investors scrutinize AI returns and hyperscaler currency flows. BofA believes this uncertainty could beryllium partially offset by continued momentum from ample connection exemplary developers and the buildout of AI-focused manufacturing capacity.

In different news, connected December 17, Texas Instruments Incorporated (NASDAQ:TXN) announced the commencement of accumulation astatine its newest 300mm semiconductor fabrication installation successful Sherman, astir 50 miles northbound of Dallas. The works is portion of a semipermanent concern program totaling astir $40 billion, archetypal outlined 3 years ago.

The facility, known arsenic SM1, volition ramp accumulation successful enactment with lawsuit demand. At afloat scale, it is expected to nutrient “tens of millions of chips regular that spell into astir each physics device,” including smartphones, automotive systems, aesculapian devices, concern equipment, astute location products, and information centers.

The accumulation motorboat comes amid a broader enlargement successful artificial intelligence, semiconductor manufacturing, and information halfway construction, with expanding enactment centered successful North Texas.

Texas Instruments Incorporated (NASDAQ:TXN) designs, manufactures, and sells semiconductors, with a halfway absorption connected analog and embedded processors.

While we admit the imaginable of TXN arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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Disclosure: None.