Investing.com -- Stifel raised its price target on Texas Instruments to $340 from $290 after meetings with the company’s investor relations team pointed to a broadening industrial recovery and a fast-growing data center business that the broker believes could carry the chipmaker to a trillion-dollar valuation.

The key takeaway, Stifel analysts say, was that "TXN’s narrative has shifted from one of patient cycle-waiting to one of active recovery validation."

The analysts led by Tore Svanberg point to industrial recovery as one of the core catalysts, with Texas highlighting a strong first quarter. Management described January, February, and March as all accelerating, with growth running across every sub-sector and every major region — the U.S., EMEA, and China — simultaneously.

Industrial revenue rose more than 30% year-on-year and over 20% sequentially in the first quarter, a breadth of contribution that analysts view as "qualitatively different from anything we observed during 2025," when a strong first half gave way to a softer second half. CEO Haviv Ilan had candidly described that period as a "head fake."

Alongside the industrial recovery, the company’s Data Center business has emerged as a second growth engine, representing roughly 12% of first-quarter revenue and tracking toward a $2 billion annualized run-rate.

Stifel expects that segment to scale to around 20% of revenue by 2029, with the next leg of opportunity tied to 800V power architecture using gallium nitride technology.

The analysts also pointed to TXN’s capacity position as a structural advantage heading into the next upcycle. Internal manufacturing capacity now stands at roughly $25 billion, up from around $16 billion during the 2020-22 upcycle, with significant additional cleanroom and shell capacity available on shorter lead times than building from scratch.

All of that capacity is U.S.-based, which Stifel noted makes TXN’s footprint "geopolitically dependable in a way few analog peers can match."

Zooming out, the team drew a direct parallel to the valuation re-ratings seen in processors, foundries, and memory stocks, arguing that a best-in-class analog company could similarly reach the trillion-dollar milestone.

"Our take is that TXN has invested in enough capacity to have the optionality to get there should the market move in this direction," the analysts wrote.