Texas Instruments, Analog Devices, and ON Semiconductor are capitalising on growing demand for analog chips in AI infrastructure. These chips manage power flows and convert real-world inputs into digital data, making them essential for data center operations. Texas Instruments reported 23% year-over-year revenue growth in Q2, with its analog segment up 29%. The company cited continued growth in industrial, data center, and automotive segments. Analog Devices saw 40% year-over-year revenue growth in fiscal 2026 Q3, with net income more than doubling. The company maintains a 39% free cash flow margin and has returned over $24 billion to shareholders in the past decade. ON Semiconductor expects AI data center revenue to more than double in 2026. The company is acquiring Synaptics to strengthen its position in physical AI, expanding its addressable market to $243 billion by 2030.

The global semiconductor market reached record sales of $403.3 billion in the second quarter of 2026, rising 35.1% sequentially, driven by artificial intelligence and advanced computing demand. June sales climbed 123.6% year-over-year to $134.5 billion. Four chip stocks appear well-positioned to benefit from the AI boom. Analog Devices is experiencing broad-based recovery with AI-related data centre activity expanding across optical and power applications. Taiwan Semiconductor Manufacturing Company maintained 73% market share, supported by robust AI demand. Semtech is benefiting from rising AI data centre networking demand as 800G remains active. ASM International holds a market share exceeding 55% in ALD technology, with management expecting second-half revenues to rise more than 20%. All four companies show strong growth trajectories, with consensus estimates suggesting revenue increases of 34% to 41% and earnings growth of 55% to 104% for 2026.

Analog Devices has priced a $3 billion senior notes offering, closing on 17 September 2026, according to an SEC filing. The offering comprises four tranches: $500 million of 5.100% notes due 2029, $500 million of 5.350% notes due 2031, $1 billion of 5.600% notes due 2033, and $1 billion of 5.750% notes due 2036. J.P. Morgan Securities served as representative of the underwriters. The notes are unsecured and rank equally with the company's existing senior indebtedness. The weighted average coupon across the four tranches is approximately 5.57%, implying annual pre-tax interest expense of roughly $167 million. The filing does not disclose the intended use of proceeds.