Silicon Laboratories Inc. shares jumped 31.5% to $179.7 in overnight trading after Dallas-based Texas Instruments Inc. reportedly entered advanced talks to acquire the chip designer for approximately $7 billion.

Reuters reported citing source that a deal could be announced in coming days. According to Reuters, The Financial Times was the first to report the negotiations.

The potential deal comes as chipmakers see increased demand from technology companies expanding compute infrastructure to support AI initiatives.

Terms of the deal were not immediately disclosed, and talks could still fall through, according to the report.