The semiconductor landscape is undergoing a seismic shift as the demand for advanced power management integrated circuits (PMICs) surges, driven by the energy needs of next-generation data centers and electric vehicles (EVs). Texas Instruments (NASDAQ: TXN) and onsemi (NASDAQ: ON) are at the forefront of this transition, moving from traditional 48-volt systems to more efficient 800-volt platforms. This change is not merely an upgrade; it’s essential for managing the increased power density required by modern AI applications and EV technologies.

Institutional investors are taking notice, with both companies recently receiving sell-side upgrades and engaging in aggressive buyback programs. Texas Instruments is expected to see substantial growth in its data center segment, projected to reach $4.5 billion by 2028, while onsemi’s strategic acquisitions position it as a leader in high-efficiency power solutions. The rising short interest in onsemi indicates potential volatility, especially with its ongoing buyback efforts.

For market professionals, the key takeaway is that investing in Texas Instruments and onsemi offers exposure to the structural shifts in power management critical for AI and EV advancements. With both companies poised for long-term growth, they merit close attention as the 800-volt supercycle unfolds.

Source: marketbeat.com