Texas Instruments (NASDAQ:TXN) President and CEO Haviv Ilan said the company’s data center business is helping boost a recovery in demand.
“Comms is recovering. But data center is probably the fastest recovering market. This is where we see very strong growth at about 50%. It’s also establishing almost like new peaks. So it’s going back to 2022 level,” said Ilan at the Goldman Sachs Communacopia + Technology Conference.
Ilan noted that data center is the company’s fastest-growing market.
“It’s our fastest-growing market this year, and I see more and more opportunity to play a bigger game for the company. And the run rate is not — it’s not low. It’s like probably a $1 billion or $1.2 billion in between. That’s how I expect us to finish 2025, and I see a tremendous opportunity for growth in the future,” Ilan added.
Texas Instruments, like other chipmakers, is eyeing to benefit from a build-out of data centers, which are required in part for the growing AI services.
Ilan noted that Texas Instruments currently gets a single-digit percentage of revenue from that market, but “growing to be, in my opinion, 20% of our market, not so far away from now because of the clip, it runs in terms of growth.”
Last week, Texas Instruments’ CFO Rafael Lizardi cautioned at the Citi TMT conference that recovery in semiconductor demand is not quite snapping back as some have hoped.