Jul. 22 at 10:28 PM
$TXN delivered a stronger report than the market reaction suggests.
Texas Instruments doubled data center sales YoY and expanded gross margins by 330 bps QoQ. Free cash flow also improved significantly as CapEx was reduced after years of investing ahead of demand to build capacity.
The key takeaway: power semiconductors are becoming a critical part of the AI infrastructure buildout.
As more AI data centers come online, demand for efficient power management, analog chips, and industrial semiconductors should continue growing.
Beyond
$TXN, companies positioned in power semis could benefit from this long-term trend:
$IFNNY
$ON
$STM
$ADI
While investors remain focused on GPUs and AI software, the power layer supporting data centers may become one of the biggest beneficiaries of the AI expansion.
Watch revenue growth, margins, and AI infrastructure exposure. The power semiconductor opportunity may still be underappreciated.