Wall Street closes at a record for the first time since end of January
Investing.com - KeyBanc Capital Markets raised price targets on several semiconductor stocks following a recent trip to Asia, citing memory shortages and surging pricing impacting end-markets.
The firm increased estimates and price targets for Intel (NASDAQ:INTC), Micron Technology (NASDAQ:MU), and Monolithic Power Systems (NASDAQ:MPWR), maintaining Overweight ratings. KeyBanc also raised estimates for Analog Devices (NASDAQ:ADI), NXP Semiconductors (NASDAQ:NXPI), ON Semiconductor (NASDAQ:ON), and Texas Instruments (NASDAQ:TXN), all rated Overweight. Texas Instruments, with a market cap of $177 billion and a P/E ratio of 35.7, has delivered 13% revenue growth recently while maintaining a gross profit margin of 57%. According to InvestingPro analysis, the stock currently trades above its Fair Value, though the company has raised its dividend for 22 consecutive years. Investors can access detailed analysis through TXN’s comprehensive Pro Research Report, one of 1,400+ available on the platform. The firm views Broadcom (NASDAQ:AVGO) negatively while maintaining an Overweight rating, and rates Qualcomm (NASDAQ:QCOM) Sector Weight.
Analog bookings in the first quarter of 2026 are tracking better than expected due to increasing lead times from supply tightness, demand pull-forward in PCs and smartphones ahead of memory price increases, and TSMC converting capacity to add more CoWoS supply. Non-AI analog capacity is competing for resources with AI, particularly in power management where Nvidia GPU power requirements have increased by 40% on average across each generation.
DRAM and NAND pricing increased approximately 100% quarter-over-quarter in the first quarter of 2026 and is expected to see significant increases in the range of 30% to 50% quarter-over-quarter in the second quarter of 2026. Long-term agreements recently put in place between SanDisk and Meta place a floor on pricing and require prepayment for capacity upfront.
Nvidia’s supply of CoWoS in 2026 remains unchanged at 650,000 interposers, up 76%, while secured supply in 2027 stands at 840,000, up 29%. The ramp of Nvidia’s Rubin GPU has been delayed due to issues related to the qualification of HBM4, with production targets reduced to 1.5 million Rubin GPUs from 2 million originally.
In other recent news, Texas Instruments has introduced new isolated power modules featuring IsoShield technology, which reportedly offer up to three times higher power density compared to discrete solutions. These modules, the UCC34141-Q1 and UCC33420, utilize a multichip packaging solution that reduces the solution size by up to 70% while delivering up to 2W of power. Additionally, Texas Instruments has announced a collaboration with Nvidia to develop technology for humanoid robots, integrating TI’s motor control, sensing, and power technologies with Nvidia’s robotics compute platforms. This partnership aims to enhance 3D perception and safety awareness capabilities in humanoid robots.
On the financial front, Stifel has reiterated a Hold rating on Texas Instruments with a $215 price target, expressing caution over elevated capital expenditures while awaiting clearer revenue growth visibility. Meanwhile, Cantor Fitzgerald has maintained a Neutral rating but raised its price target for the company to $250, noting that industrial demand is tracking as expected. The firm highlighted that Texas Instruments’ free cash flow is projected to be above $8 per share by 2026, surpassing consensus estimates of $6.92. Cantor Fitzgerald also mentioned that the focus at an upcoming company event is likely to be on capital expenditure guidance and updates on revenue and free cash flow scenarios.
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