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Texas Instruments Incorporated (TXN)

POSITIVE
TechnologySemiconductorsUnited States

Price

$275.74

Market Cap

$251.82B

Fundamental

68

Technical

75

Composite

70

AI Analysis

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Overview

Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, the rest of Asia, Europe, the Middle East, Africa, Japan, and internationally. It operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, multiphase controllers and power stages, and lighting products. This segment also provides signal chain products that sense, condition, and measure real-world signals and convert them into data to be transferred or converted for further processing and control, such as amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers, processors, wireless connectivity, and radar products; and applications processors for specific computing activity. It also provides DLP products primarily for use in projecting high-definition images; calculators; and application-specific integrated circuits. Its products are used in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Balance Sheet & Liquidity

Revenue

$5.46B

Net Income

$1.98B

Free Cash Flow

$1.00B

Total Equity

$18.01B

Total Liabilities

$17.88B

Current Ratio

4.86

Interest Coverage

-

Debt/EBITDA

7.74

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Fair Value Estimation

Overvalued

Fair Value

$181.27

Current Price

$275.74

Margin of Safety

-52.1%

Fair Value Range

$117.82 - $244.71

Estimation Methods

Analyst Target:$324.45
DCF:$66.68
PE-based:$192.06
Graham Growth:$48.69
EPV:$52.49
Analyst Consensus:Buy (19B / 22H / 3S)
Last Earnings Surprise:+9.50%

Valuation Metrics

P/E Ratio

127.66

ROE

11.0%

P/B Ratio

13.98

P/FCF

251.57

Gross Margin

61.4%

ROIC

5.6%

Value Creation (Economic Moat)

ROIC

5.6%

WACC

11.1%

ROIC − WACC

-5.5 pp

ROIC is below the cost of capital — the company is destroying value for every dollar invested.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 13.75%
  • Price CAGR 14.22%
  • ROIC 5.6%
  • Gross Margin 61.4%
  • Debt/Equity ratio
  • Operating Margin 42.3%
  • Positive Free Cash Flow
  • Current Ratio
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 35.8%
  • Earnings Surprise avg 6.7%
  • Earnings Quality (OCF/NI) 1.37
  • Share Dilution 0.3%
  • Net Margin Trend 36.2% vs 32.0%
  • Piotroski F-Score 9/9

Failed (8)

  • P/FCF 251.57
  • P/B Ratio 13.98
  • CapEx intensity
  • Debt/EBITDA
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Revenue Growth 5Y 4.1%
  • Analyst Consensus 43% Buy

Unavailable (3)

  • Dividend Payout NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)

Price Chart

Technical Indicators

RSI (14)

41.80

SMA 50

$298.15

SMA 200

$226.54

MACD

-1.91

Volatility

2.6%

Momentum (12m)

52.3%

RSI 41.8, SMA trend bullish, momentum 52.3%.

Piotroski F-Score

9/9

Strong financial health

score
criteria

Earnings Quality

1.37

High quality: earnings backed by cash

Share Dilution

30.0%

Issuing new shares, diluting ownership

Governance

Executive Team

NameTitleAge
Mr. Haviv IlanPresident, CEO & Chairman56
Mr. Rafael R. LizardiSenior VP & CFO52
Mr. Hagop H. KozanianSenior Vice President of Analog Signal Chain42
Mr. Amichai RonSenior Vice President of Embedded Processing & DLP® Products47
Ms. Julie C. KnechtVP & Chief Accounting Officer53
Dr. Ahmad R. S. Bahai Ph.D.Senior VP & CTO62
Ms. Krunali PatelSenior VP & Chief Information Officer-
Mr. Mike BeckmanVP & Head of Investor Relations-
Ms. Katharine KaneSenior VP, General Counsel, Legal, Chief Compliance Officer & Secretary40
Ms. Christine A. WitzscheSenior Vice President of Communications & Investor Relations40

Audit Risk

8

Board Risk

7

Compensation Risk

9

Shareholder Rights Risk

7

Latest News

Recent headlines for TXN, sourced from Markets Gazette.

  • 9d agoNEGATIVE
    Texas Instruments shares are sliding, and its rival is doing even worse. What’s going on in the world of analog semiconductors.

    Texas Instruments (TXN) saw its shares decline on Thursday, mirroring a broader downturn in the analog semiconductor sector. Rival STMicroelectronics (STM) experienced an even steeper drop. Both companies reported strong second-quarter demand but struggled to meet elevated market expectations. This suggests a potential slowdown or a reassessment of growth prospects within the analog chip market, which could impact future earnings and investor sentiment for companies reliant on this segment.

  • 5/18/2026POSITIVE
    $1000 Invested In Texas Instruments 20 Years Ago Would Be Worth This Much Today

    An investment of $1000 in Texas Instruments (TXN) made 20 years ago would have grown substantially, highlighting the company's long-term value creation. While specific figures are not provided in the summary, this historical performance indicates robust revenue growth, consistent profitability, and effective capital allocation strategies over two decades. For investors, this underscores TXN's potential as a stable, growth-oriented holding within the semiconductor industry, suggesting a history of innovation and market leadership that has translated into significant shareholder returns.

  • 4/24/2026POSITIVE
    This Old-School Tech Name Is Emerging As An Unexpected AI Winner

    Texas Instruments experienced its third-largest daily gain following a remarkable 90% surge in data center sales. This significant revenue growth in a key AI-driven sector has prompted Wall Street analysts to issue 17 price target increases. The company's performance indicates a strong position in the burgeoning AI market, potentially attracting further investor interest and validating its strategic focus on advanced semiconductor solutions for data-intensive applications.

  • 4/23/2026POSITIVE
    Texas Instruments topped Wall Street’s outlook on more than just data-center demand

    Texas Instruments has surpassed Wall Street's expectations, reporting strong demand not only from the booming data-center sector but also significantly from its core industrial customer base. This dual-engine growth suggests a broader economic recovery or resilience, particularly in manufacturing. The company's increased outlook signals robust performance ahead, offering investors a positive outlook on a key semiconductor player deeply integrated into industrial supply chains. This diversified demand is a strong indicator of sustained revenue growth and market share.

  • 4/22/2026NEUTRAL
    Transcript: Texas Instruments Q1 2026 Earnings Conference Call

    Texas Instruments Inc. held its Q1 2026 Earnings Conference Call on April 22, 2026. The transcript provides detailed insights into the company's financial performance, strategic initiatives, and future outlook. While specific financial figures and forward-looking statements are crucial for a definitive analysis, the mere release of an earnings call transcript is informational. Investors will scrutinize the call for management's commentary on demand trends, product cycles, competitive landscape, and capital allocation strategies to gauge the company's health and future prospects. The absence of immediate market-moving news within the transcript itself suggests a neutral initial reaction pending deeper analysis of the content.

  • 4/17/2026POSITIVE
    This Texas Instruments Analyst Is No Longer Bearish; Here Are Top 5 Upgrades For Friday

    A notable shift in sentiment from a key Wall Street analyst has seen Texas Instruments (TXN) upgraded from a bearish to a neutral or positive stance. This reassures investors about the semiconductor manufacturer's future prospects. The analyst also highlighted upgrades for Postal Realty Trust, Onto Innovation, Petroleo Brasileiro ADR, and Quaker Chemical Corp., suggesting a broader positive outlook across several sectors. For TXN investors, this analyst's change of heart could signal a potential bottoming out of recent price weakness and an opportunity for recovery.

  • 4/14/2026POSITIVE
    $100 Invested In Texas Instruments 15 Years Ago Would Be Worth This Much Today

    An investment of $100 in Texas Instruments (TXN) 15 years ago would have grown significantly, highlighting the company's long-term value creation. While specific figures are not provided in the title, such a scenario typically implies substantial capital appreciation, likely driven by consistent revenue growth, successful product innovation in semiconductors, and strategic market positioning. Investors who held TXN stock over this period would have benefited from the company's performance in areas like analog and embedded processing, which are critical for automotive, industrial, and personal electronics markets. This historical performance suggests a strong track record of shareholder returns.

  • 3/26/2026POSITIVE
    If You Invested $100 In Texas Instruments Stock 15 Years Ago, You Would Have This Much Today

    An investment of $100 in Texas Instruments (TXN) stock 15 years ago would have grown to a substantial amount today, reflecting the company's strong long-term performance. While the exact figure is not provided, the implication is significant capital appreciation. This historical performance underscores TXN's resilience and growth potential in the semiconductor industry, driven by its analog and embedded processing chips. Investors considering TXN should note its consistent revenue growth and profitability over the past decade, which have contributed to its robust stock returns.

  • 3/13/2026POSITIVE
    If You Invested $1000 In Texas Instruments Stock 20 Years Ago, You Would Have This Much Today

    An investment of $1,000 in Texas Instruments (TXN) stock twenty years ago would have yielded a substantial return, illustrating the long-term growth potential of the semiconductor manufacturer. While specific figures are not provided in the prompt, such historical performance analyses typically highlight significant capital appreciation and dividend reinvestment benefits. Texas Instruments has a history of innovation in analog and embedded processing chips, serving diverse markets including automotive, industrial, and personal electronics. Investors who held TXN over two decades likely benefited from the company's consistent product development and market expansion, underscoring its resilience and profitability in the technology sector.

  • 3/10/2026POSITIVE
    From Wearables To Robots: Texas Instruments Launches AI-Ready Microcontrollers

    Texas Instruments has launched a new line of AI-ready microcontrollers designed for enhanced, low-power processing capabilities. These chips are specifically targeted at the rapidly growing wearables and robotics markets, promising to accelerate innovation in these sectors. The development signifies TI's strategic push into the burgeoning field of edge AI, enabling more sophisticated functionalities directly on devices. For investors, this move positions Texas Instruments to capitalize on the increasing demand for intelligent, power-efficient embedded systems, potentially driving future revenue growth and market share expansion.

via Markets Gazette

Disclaimer

This platform is for educational purposes only. It does not provide financial, investment, or trading advice. All scores, valuations, and signals are based on automated analysis of publicly available data that may be incomplete or inaccurate. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

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