Citi has elevated Texas Instruments and Monolithic Power Systems to its top Buy-rated analog semiconductor picks, citing a favorable shift in the industry cycle. Analyst Atif Malik noted that the group has entered Phase 2 of its cyclical framework, where companies with product cycles or self-help stories typically outperform.

Malik highlighted Texas Instruments' gross margin upside potential as capital spending moderates and the company boosts data-center-related R&D investments. Monolithic Power Systems is favored for its expected outperformance driven by enterprise data sales growth. The analyst pointed to data-center-related sales surging 50-70% year over year in 2025, far outpacing the broader analog and MCU industry's 6% growth.

Citi remains bullish on the broader analog semiconductor sector, projecting that data-center revenue could account for more than 25% of sales for most companies. The firm estimates analog companies' data-center and AI revenue could grow roughly 70% year over year in 2026. From a cycle perspective, Citi's analysis suggests the analog upturn still has room to run, with industry revenue only modestly above the prior peak and remaining below the average expansion seen in past cycles.