Texas Instruments Inc (NASDAQ:TXN) shares are up 8.2% to trade at $212.80 at last glance, brushing off disappointing fourth-quarter results of $1.27 per share and revenue of $4.42 billion. Amid strong AI data center demand, the company's strong first-quarter forecast is giving the shares a lift.
In response, a handful of analysts lifted their price targets, while Bank of America upgraded the chip maker from "underperform" to "neutral" and raised its price objective to $235. The analyst noted recent rebounds in the industrial sector along with data center market strength.
TXN has been climbing since late November, and is now trading at its highest levels since July. Since the start of 2026, the security is already up 22.8%.
Options traders are piling in on TXN. So far, 34,000 calls and 19,000 puts have changed hands, which is already 2.6 times the stock's average daily options volume. The most popular contract is the February 220 call, followed by the weekly 1/30 220-strike call, with positions opening at the latter.
It's also worth TXN's Schaeffer's Volatility Scorecard (SVS) sits at a high 98 out of 100, indicating Texas Instruments' stock has tended to exceed option traders' volatility expectations during the past year.
