Investing.com -- Seaport Research upgraded Texas Instruments to Buy from Neutral on Friday, setting a $400 price target and arguing that a sweeping re-architecture of data center power distribution will drive a surge in demand for power analog semiconductors over the coming years.

In a note, analyst Jay Goldberg said growing power demand and rising electrical intensity per rack are pushing data centers toward 800-volt DC systems, which offer improved transmission efficiency over traditional 480-volt systems.

The transition is expected to expand the total addressable market for power analog semiconductors from around $5 billion today to $15 billion by 2030, while also improving the margin profile of the category.

Seaport believes Texas Instruments is best positioned to benefit, citing the company's broad power semiconductor product offering and strong gallium nitride platform.

The firm expects a multi-quarter improvement in Texas Instruments' data center segment to drive earnings upside.

Goldberg noted that volume deployments of 800-volt data centers are not expected until 2028, with initial builds anticipated next year. However, design decisions are taking place this year, meaning supply chain signals and announcements are likely to surface well ahead of the full earnings impact.

Beyond Texas Instruments, Seaport identified several other potential beneficiaries. The firm said Infineon has among the best silicon carbide and GaN product offerings, while Navitas and Wolfspeed are described as "highly levered to GaN and SiC, respectively."

The transition is set to begin with Nvidia's Kyber racks, which are expected to enter volume shipments late next year.