Independent research firm Arete Research upgraded Texas Instruments (TXN) from “Neutral” to “Buy” and raised its price target by 34% from $303 to $405. Arete Research noted that Texas Instruments’ second-quarter revenue rose 23% year-over-year to $5.46 billion, exceeding market expectations, with data center revenue doubling. The firm believes that surging demand for artificial intelligence is expected to lead to a shortage of analog semiconductors over the next three years, and that Texas Instruments, with its favorable position in terms of production capacity, is poised to gain significant market share during this cycle.