Texas Instruments: Future Price Increases Due to Semiconductor Boom?
The stocks of Texas Instruments (TI) currently show promising prospects for price increases, primarily due to the positive developments in the semiconductor sector. Several factors contribute to this optimistic market assessment:
Strong Investments and Capacity Expansions
Texas Instruments is investing massively in expanding its production capabilities in the USA. TI plans to invest over 60 billion US dollars in the construction and expansion of seven semiconductor plants 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 constructing a new 300mm 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 expanding its production capabilities.
Market Growth in the Semiconductor Sector
The global market for semiconductor manufacturing equipment is experiencing strong growth – from a volume of approximately 107.6 billion US dollars in 2024, an increase to around 350 billion US dollars by 2037 is projected, with an average annual growth rate of about 9.5%. The leading segment of high-tech semiconductors is also expected to nearly double by 2034.
Positive Analyst Ratings
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 from a demand increase due to its limited use of distribution channels. Furthermore, strong growth in free cash flow is expected; the price target was recently raised to about 245 USD with the potential for the stock price to double by 2026.
For investors in German-speaking regions, 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 sector.
In summary, the combination of strong investments in production capacities within the USA and favorable market prospects for the entire semiconductor market creates a positive environment for Texas Instruments for sustainable growth and thus also attractive perspectives for investors.