TXNTexas Instruments exhibits strong fundamental performance with a solid balance sheet and consistent profitability. While current technical indicators suggest potential short-term choppiness, its long-term thematic positioning in key semiconductor markets remains robust. The dividend yield adds an income component, making it attractive for a balanced portfolio.
Texas Instruments is well-positioned within the analog and embedded processing segments of the semiconductor industry, which are critical for major secular trends like automotive electronics, industrial automation, and the Internet of Things (IoT). The company's diverse product portfolio mitigates reliance on any single end-market.
Texas Instruments demonstrates robust financial health, characterized by strong profitability, a healthy balance sheet with manageable debt, and consistent free cash flow generation. Its valuation metrics, while not cheap, are justifiable given its market position and growth prospects. The company also offers a stable dividend.
Texas Instruments' stock is currently trading below key short-term and medium-term moving averages, indicating a bearish short-term trend. Oscillators like RSI and Stochastic %K suggest the stock is oversold, potentially signaling a near-term bounce, but overall momentum is weak.
| Factor | Score |
|---|---|
| Semiconductor Market Growth | 85 |
| Automotive Electronics | 80 |
| Industrial Automation & IoT | 78 |
| Competition & Technological Shifts | 65 |
| Geopolitical & Supply Chain Risks | 70 |
| Factor | Score |
|---|---|
| Valuation | 55 |
| Valuation | 60 |
| Profitability | 90 |
| Growth | 40 |
| Growth | 45 |
| Balance Sheet Health | 70 |
| Cash Flow | 80 |
| Shareholder Returns | 10 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Trend Analysis | 40 |
| Momentum | 80 |
| Momentum | 75 |
| Volume Confirmation | 70 |
| Support & Resistance | 60 |
Consistent EPS Beat
The company has consistently beaten earnings per share (EPS) estimates in the last 5 quarters, with an average surprise of +8.2%. This indicates strong operational execution and reliable earnings generation.
Reasonable Valuation Metrics
The trailing P/E ratio of 35.2x is reasonable given the company's industry and historical growth. The P/S ratio of 13.8x (TTM) should be considered in the context of the company's high gross margins and net profit margins.
High Quarterly P/E Ratio
The quarterly P/E ratios (e.g., 137.4x for 2025Q1) are significantly high, suggesting that the market is pricing in substantial future growth that may be difficult to achieve, potentially leading to valuation corrections.
Declining Revenue Trend
Annual revenue has shown a declining trend from $20.028 billion in 2022 to $15.641 billion in 2024, indicating potential market saturation, increased competition, or product cycle challenges.
July 2025
31
Ex-Dividend Date
August 2025
12
Next Dividend Date
October 2025
22
Next Earnings Date
H: $1.63
A: $1.51
L: $1.39
H: 4.80B
A: 4.65B
L: 4.53B
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States, China, rest of Asia, Europe, Middle East, Africa, Japan, and internationally. The company 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, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including 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. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, calculators, and others. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. 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.
203.28 USD
The 39 analysts offering 1 year price forecasts for TXN have a max estimate of 260.00 and a min estimate of 125.00.