Mizuho has increased its price objective on Texas Instruments (NASDAQ: TXN) from $145.00 to $160.00, yet the investment bank maintained an Underperform rating on the shares.
The firm highlighted that Texas Instruments' December-quarter revenue matched consensus at $4.4 billion. Management guided the March quarter to revenue of $4.5 billion, representing a 2% sequential rise and edging slightly ahead of consensus expectations of $4.4 billion.
Mizuho pointed to improving bookings as the principal driver lifting March-quarter performance above typical seasonal patterns. The firm noted that Texas Instruments' seasonal trends have historically been flat to down by low-single-digits quarter-over-quarter, making the company’s current guidance notable. Mizuho identified strength in the Industrial and Data center end markets as contributors to the better-than-seasonal outlook.
Within the Data center franchise, Mizuho described growth that has brought that business to roughly $450 million per quarter, which is about 10% of the company’s overall revenue. The bank listed specific catalysts supporting the data center expansion, including demand for server Vcore CPU components, power rail elements, voltage regulator modules (VRMs), and signal chain applications.
Although Mizuho lifted the price target, the firm left its Underperform rating intact, citing valuation concerns. The broker indicated that Texas Instruments trades at approximately 32 times earnings, which Mizuho regards as stretched versus the peer-group average of about 26 times earnings. Ahead of Texas Instruments’ Capital Management Day scheduled for February 24, the firm said it has adjusted its estimates to be below consensus.
Separately, Texas Instruments reported fourth-quarter 2025 financial results that missed analyst forecasts by small margins. The company disclosed earnings per share of $1.27, narrowly under the expected $1.29, and revenue of $4.42 billion, slightly below the anticipated $4.45 billion. These results reflect a modest shortfall in both earnings and revenue relative to projections. The report attracted attention from investors and analysts, though no analyst upgrades or downgrades were noted in connection with the release.
In sum, Mizuho’s revised target reflects more positive near-term demand signals, particularly in Industrial and Data center end markets, while the bank’s rating and estimate reductions underscore ongoing concerns around valuation and the need for clarity at the company’s upcoming capital-markets event.