US Semiconductors: AI Power Semis: Top picks are TXN, ADI, and ON for the 800V era; raise POs

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US Semiconductors: AI Power Semis: Top picks are TXN, ADI, and ON for the 800V era; raise POs

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US Semiconductors

AI Power Semis: Top picks are TXN, ADI,

and ON for the 800V era; raise POs

Price Objective Change

Multi-year content gains still seem underappreciated 25 May 2026

We spotlight our 3 diversified semi top picks following our AI power, 800V, and analog Equity

semis in the data center deep dive (“Watts to Tokens:…”). Core industrial/auto markets United States

seem to have finally turned the corner, going from headwinds during the inventory Semiconductors

correction to cyclical tailwinds, and are now being augmented by transformative growth Vivek Arya

in the AI data, redefining the LT growth profile, mix, and opportunity set for the Research Analyst

subsector. While shares have rallied recently (TXN +59% QTD, ADI +25% QTD, ON +88% BofASvivek.arya@bofa.com

QTD), we still think potential content gains could be underappreciated in Street Duksan Jang

estimates. Our bottom-up AI analog semi industry model which translates Research Analyst

BofAS

accelerator/rack demand into content pools across analog ICs, discretes, MCUs and then duksan.jang@bofa.com

into supplier revenue share for data center/power infra markets point to TXN, ADI, and Michael Mani

ON as notable winners in the shift to high power. Raise TXN/ON POs and reiterate Buy. Research Analyst

michael.mani@bofa.com

TXN: portfolio breadth, leading share, internal capacity Liam Pharr

At ~$1.5bn sales in CY25 (+64% YoY), we believe TXN boasts the largest data center Research Analyst

business in the analog semi space. However, we highlight their business, which grew liam.pharr@bofa.com

+90% YoY in Q1, is still mainly general-purpose amplifiers, clocking, voltage references,