Leandro
Equity Analyst at Best Anchor Stocks
If cars are becoming computers on wheels, analog chipmakers such as Texas Instruments and Analog Devices stand to sell a good chunk of the technology without bearing the still-uncertain risk of fully autonomous driving. Copart's CEO noted a new Tesla runs about 100 million lines of code, versus 30 million for an Airbus aircraft. x.comÂ
Price is now confirming the rotation into analog semiconductors, one of the most overlooked chip themes, with almost all names up 20%+ in two weeks and breaking out. GPUs need analog power management, demand spans AI data centers, EVs, robotics and industrial, and pricing power is strong. Analog typically leads late in the cycle, after core semis. Texas Instruments, the favorite, and Analog Devices hold almost 30% of the market, alongside onsemi, Lattice, Microchip and Allegro. x.com x.com x.comÂ
Analog is back, and Texas Instruments can reach $350 or more after great earnings and guidance. The stock printed a "god candle" on the results, and the bigger the base, the higher it can go. A post the author quotes says Texas Instruments leads with a 20% share of the analog market and is attempting a five-year base breakout with strong accumulation. x.comÂ
Texas Instruments looks expensive as a $260 billion chipmaker trading at about 50 times earnings while earning only $1.5 billion this quarter. x.comÂ
STMicroelectronics, onsemi, Texas Instruments and Allegro MicroSystems benefit as AI data center server ramps drive analog demand, offsetting part of continued auto weakness, per an interesting Mizuho note. Mizuho says analog lead times are rising toward 40-42+ weeks with price hikes expected around June and July, and it raised targets on STMicro, onsemi and TI. Per @sean_________ quoting Mizuho, TI plans a second price increase this year, while STMicro and Allegro raised prices about 10%. x.comÂ
Texas Instruments could command a P/E in the high 20s for FY2026, given strong EPS guidance of about $2 and a very bullish backdrop for microcontrollers, power electronics such as GaN and DC/DC, and analog chips for the AI data-center ramp. x.comÂ
Analog and power semiconductor stocks such as ON Semiconductor, Texas Instruments and NXP are pricing far ahead of their fundamentals. Even with price hikes they are not back to 2022 revenue, yet their share prices have risen multifold. The semiconductor supercycle is lifting even these laggards. x.com x.comÂ
AI power pure plays Navitas, Monolithic Power, Vicor, Bloom Energy and Power Integrations carry the real leverage to the AI power theme. For broader names like Texas Instruments, Analog Devices, Caterpillar and Eaton, AI power is a rounding error that barely moves the P&L. Same theme, wildly different exposure, so buy the needle movers rather than the whole basket. x.comÂ
Analog semiconductor stocks such as STMicroelectronics, Tower Semiconductor, Analog Devices and Texas Instruments are set to rise further because they are starting to have pricing power for the first time in a long time. x.comÂ
indie Semiconductor is a $4 ticket to cars becoming computers on wheels. It makes automotive chips for driver assistance and autonomy, revenue grew 24% last quarter, and its radar and vision business is expanding. It also just launched an edge AI chip for smart cameras. x.comÂ
Texas Instruments is pushing ahead with further price increases, part of a second round of hikes across analog and power chipmakers, per @Omercheema. x.comÂ
