🧠 Food for thought

Implications, context, and why it matters.

Texas Instruments positioned for significant revenue shift despite starting from small base

• The company’s data center business currently represents only a single-digit percentage of total revenue, but CEO Haviv Ilan expects it to reach 20% “not so far away from now” 1.
• With Texas Instruments’ current annual revenue of $16.68 billion, reaching 20% market share would translate to over $3.3 billion in data center-related sales 2.
• This growth potential is supported by the broader data converter market, where Texas Instruments competes alongside Analog Devices and Skyworks Solutions, which is projected to grow from $5.5 billion in 2023 to $7.4 billion by 2028 3.
• The company’s recent quarterly performance shows momentum, with revenue growing 16.38% compared to the previous quarter, suggesting the recovery Ilan described is already underway 2.

AI-driven infrastructure expansion creates sustained demand for power management semiconductors

• The International Energy Agency projects that global electricity demand from data centers could double between 2022 and 2026, driven primarily by AI applications 4.
• Data centers are expected to account for up to 21% of global energy demand by 2030, a significant increase from the current 1% to 2%, creating demand for power management solutions 4.
• This expansion directly benefits Texas Instruments’ core expertise in analog semiconductors, which handle power control and data transmission—essential functions as data centers pack more AI-processing equipment into tighter spaces 3.