Analog chip trio rides AI data center demand; Texas Instruments up 29%

The article frames analog chips as the less-covered layer of the AI buildout: they don't train models, but data centers cannot run without them. Texas Instruments' Q2 numbers are the clearest signal in that story, with the analog segment up 29% year over year and a 13% sequential revenue jump that the article calls unusual between Q1 and Q2.

Analog Devices and ON Semiconductor show the same demand from different angles. Analog Devices has outpaced the S&P 500 with a 45% year-to-date gain and a 40% year-over-year revenue increase in fiscal 2026 Q3, while ON Semiconductor blends analog and power solutions and is positioning itself for physical AI through its pending Synaptics acquisition, expected to close in mid-2027. The article also ties ON Semiconductor to a total addressable market expected to expand by $30 billion and reach $243 billion by 2030, alongside a customer base of more than 9,000 customers and 18 manufacturing sites in nine countries.

The takeaway hinges on whether data center construction keeps rising, which the article treats as the precondition for these products gaining traction. For shareholders in these three names, the recently reported growth is already in the numbers, while ON Semiconductor's larger physical AI bet depends on a deal not expected to finalize until 2027.