Texas Instruments: Future Price Increases Thanks to Semiconductor Boom?
The shares of Texas Instruments (TI) currently show promising prospects for price increases, primarily due to the positive development in the semiconductor sector. Several factors contribute to this optimistic market assessment:
Strong Investments and Capacity Expansions
Texas Instruments is heavily investing in expanding its production capacities in the USA. TI plans to invest over 60 billion US dollars in the construction and expansion of seven semiconductor factories in Texas and Utah. These investments are expected to create more than 60,000 jobs and are part of a broader strategy to strengthen domestic chip production in light of geopolitical challenges.
New Manufacturing Facilities
In November 2023, TI began construction of a new 300-mm wafer manufacturing facility (LFAB2) in Lehi, Utah, which is expected to produce several tens of millions of analog and embedded processing chips daily. This underscores the company’s commitment to significantly expand its production capacities.
Market Growth in the Semiconductor Sector
The global market for semiconductor manufacturing equipment is growing strongly – from a volume of approximately 107.6 billion US dollars in 2024, an increase to around 350 billion US dollars is projected by 2037, with an average annual growth rate of about 9.5%. The leading sector of cutting-edge technology semiconductors is also expected to nearly double by 2034.
Positive Analyst Assessments
Analysts see a recovery in the stock price of Texas Instruments due to improved demand for semiconductors. One analyst highlights that TI could particularly benefit quickly from an increase in demand due to its limited use of distribution channels. Furthermore, strong growth in free cash flow is expected; the price target has recently been raised to about 245 USD, with the prospect of a possible doubling of the stock price by 2026.
For investors in the German-speaking region, this development is relevant as Texas Instruments is positioned as a global player in the important segment of analog and embedded chips – areas with stable demand from industries such as consumer electronics and the automotive industry.
In summary: The combination of strong investments in production capacities within the USA and favorable market outlooks for the entire semiconductor market creates a positive environment for sustainable growth for Texas Instruments and thus also attractive prospects for investors.