Rosenblatt analysts increased their price target for Texas Instruments (NASDAQ:TXN) to $250 from $210 while maintaining a Buy rating on the stock, ahead of the company’s upcoming Q2 earnings results, scheduled to be released on July 23.

The analysts expressed confidence that Texas Instruments would meet second-quarter expectations and guide for mid-single-digit growth, confirming that the bottoming of the cyclical analog dynamic occurred in the first half of 2024. They noted the company's strategic focus on counter-cyclical capacity expansion, aiming to support $30 billion in sales at full utilization and $27 billion at optimal levels by 2026. This strategy, though a source of some investor discontent, is seen as essential for addressing over 10% growth in the industrial and automotive markets and securing share gains through technology and geographic positioning.

Interestingly, while Texas Instruments' larger competitors source over 50% of their wafers from Asian sources, this geopolitical aspect seems to draw attention primarily when it involves Intel. Despite years of underperformance compared to its peers, due to management's commitment to adding up to six 300mm fabs by the end of the decade, Texas Instruments has recently shown strong performance. Over the past three months, the company has outperformed the SOX index and nearly matched the performance of analog leader ADI, signaling its potential for a significant breakthrough.