Texas Instruments Incorporated (TXN)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Texas Instruments Incorporated (TXN) trades at $293.08 with AI Score 80/100 (Grade A+). Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers globally. Market cap: $266.73B, Sector: Technology.
Price live · AI analysis from May 9, 2026TXN stock analysis for 2026: Analysts have set a consensus price target of $206.76 for Texas Instruments Incorporated, suggesting 29.5% downside from the current price of $293.08. The AI MoonshotScore is 80/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
TXN: 5/7 perspectives are bullish. Dominant signal: Izzy Englander bullish.
How is this calculated? →Texas Instruments Incorporated (TXN) Technology Profile & Competitive Position
Texas Instruments Incorporated, a global semiconductor company, specializes in analog and embedded processing solutions. With a diverse product portfolio and a focus on industrial and automotive markets, TXN leverages its established manufacturing capabilities and extensive distribution network to serve a broad customer base.
What Is the Investment Thesis for TXN?
Texas Instruments presents a compelling investment case based on its established market position and strategic focus. The company's strong free cash flow generation, with a recent FCF of $0.80 billion, supports its dividend yield of 1.95%. TXN's focus on the industrial and automotive sectors, which are experiencing increasing demand for semiconductors, positions it for sustained growth. The company's high gross margin of 57.3% and profit margin of 29.1% reflect its operational efficiency and pricing power. Key catalysts include the increasing adoption of advanced driver-assistance systems (ADAS) in automobiles and the expansion of industrial automation. Potential risks include cyclical downturns in the semiconductor industry and increasing competition from companies like Broadcom Inc. (AVGO) and Intel Corporation (INTC).
Based on FMP financials and quantitative analysis
TXN Key Highlights
- Market capitalization of $266.73B, reflecting its significant presence in the semiconductor industry.
- P/E ratio of 54.7, indicating investor expectations for future earnings growth.
- Gross margin of 57.3%, demonstrating efficient operations and strong pricing power.
- Profit margin of 29.1%, highlighting the company's ability to convert revenue into profit.
- Dividend yield of 1.95%, providing a steady income stream for investors.
Who Are TXN's Competitors?
TXN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AVGO Broadcom Inc. | $360.45 | -2.41% | $1.71T | 81 |
| MU Micron Technology, Inc. | $975.56 | -5.49% | $1.10T | 100 |
| AMD Advanced Micro Devices, Inc. | $517.82 | -4.26% | $844.36B | 93 |
| INTC Intel Corporation | $120.35 | -5.25% | $604.88B | 37 |
| QCOM QUALCOMM Incorporated | $176.25 | -3.12% | 186B | 79 |
| ARM Arm Holdings plc American Depositary Shares | $315.28 | -6.58% | $335.46B | 72 |
| MRVL Marvell Technology, Inc. | $245.29 | -9.84% | $214.58B | 69 |
| SLAB Silicon Laboratories Inc. | $218.22 | -0.07% | $7.20B | 69 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are TXN's Key Strengths?
- Strong market position in analog and embedded processing.
- Diverse product portfolio catering to multiple industries.
- Efficient manufacturing operations and supply chain.
- Extensive distribution network and global reach.
What Are TXN's Weaknesses?
- Exposure to cyclical downturns in the semiconductor industry.
- Dependence on key customers and end markets.
- Potential impact from geopolitical tensions and trade restrictions.
- Competition from larger and more diversified semiconductor companies.
What Could Drive TXN Stock Higher?
- Increasing demand for semiconductors in the automotive and industrial sectors.
- Expansion of 5G infrastructure and the Internet of Things (IoT).
- Launch of new analog and embedded processing products with enhanced performance and features.
- Strategic partnerships and acquisitions to expand market reach and product offerings.
What Are the Key Risks for TXN?
- Rich valuation — a P/E of 54.7 runs well above the Technology sector’s ~38x, leaving little room for a miss.
- Insider selling — insiders were net sellers of roughly $35.4M recently.
- Cyclical downturns in the semiconductor industry.
- Intense competition from established and emerging semiconductor companies.
- Disruptions in the supply chain and increased raw material costs.
- Geopolitical tensions and trade restrictions impacting global operations.
What Are the Growth Opportunities for TXN?
- Expansion in the Automotive Market: The increasing adoption of advanced driver-assistance systems (ADAS) and electric vehicles (EVs) is driving demand for semiconductors in the automotive market. Texas Instruments is well-positioned to capitalize on this trend with its portfolio of analog and embedded processing solutions for automotive applications. The automotive semiconductor market is projected to reach $66 billion by 2026, offering significant growth potential for TXN.
- Growth in the Industrial Sector: The industrial sector is undergoing a digital transformation, with increasing adoption of automation, robotics, and IoT devices. This is driving demand for semiconductors in industrial applications. Texas Instruments offers a range of products for industrial applications, including microcontrollers, sensors, and power management solutions. The industrial semiconductor market is expected to reach $78 billion by 2027, presenting a substantial growth opportunity for TXN.
- Focus on Power Management Solutions: The increasing demand for energy-efficient electronic devices is driving the need for advanced power management solutions. Texas Instruments offers a comprehensive portfolio of power management products, including DC/DC converters, battery management systems, and voltage regulators. The power management IC market is projected to reach $48 billion by 2028, providing a significant growth opportunity for TXN.
- Development of Advanced Microcontrollers: Microcontrollers are essential components in a wide range of electronic devices, from consumer electronics to industrial equipment. Texas Instruments is investing in the development of advanced microcontrollers with enhanced performance, security, and connectivity features. The microcontroller market is expected to reach $35 billion by 2027, offering a substantial growth opportunity for TXN.
- Leveraging Distribution Network: Texas Instruments has an extensive distribution network that reaches a global customer base. The company can leverage this network to expand its market reach and increase sales of its products. The global semiconductor distribution market is expected to reach $80 billion by 2026, highlighting the importance of a strong distribution network for semiconductor companies.
What Opportunities Does TXN Have?
- Growth in the automotive and industrial sectors driven by increasing demand for semiconductors.
- Expansion in emerging markets with increasing adoption of electronic devices.
- Development of new products and technologies to address evolving customer needs.
- Strategic acquisitions and partnerships to expand market reach and product offerings.
What Threats Does TXN Face?
- Intense competition from established and emerging semiconductor companies.
- Rapid technological advancements and changing customer preferences.
- Economic slowdowns and reduced demand for electronic devices.
- Disruptions in the supply chain and increased raw material costs.
What Are TXN's Competitive Advantages?
- Strong brand reputation and established market position in the semiconductor industry.
- Extensive portfolio of analog and embedded processing products.
- Significant investment in research and development, leading to innovative products.
- Efficient manufacturing operations and strong supply chain management.
- Extensive distribution network reaching a global customer base.
What Does TXN Do?
Founded in 1930 and headquartered in Dallas, Texas, Texas Instruments Incorporated (TXN) has evolved into a leading semiconductor company. Initially focused on geophysical services, the company transitioned to defense electronics during World War II, marking its entry into the semiconductor industry. TXN is now structured around two primary segments: Analog and Embedded Processing. The Analog segment provides power management and signal chain products, essential for regulating power and processing signals in electronic devices. These products include battery-management solutions, DC/DC switching regulators, amplifiers, data converters, and interface products. The Embedded Processing segment offers microcontrollers, digital signal processors (DSPs), and application processors, crucial for controlling and computing functions in various electronic systems. These products cater to markets such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. TXN's products are marketed and sold through direct sales, distributors, and its website, reaching a global customer base.
What Products and Services Does TXN Offer?
- Designs and manufactures analog and embedded processing semiconductors.
- Provides power management solutions for various electronic devices.
- Offers signal chain products for sensing, conditioning, and measuring signals.
- Develops microcontrollers for use in electronic equipment.
- Creates digital signal processors (DSPs) for mathematical computations.
- Produces application processors for specific computing activities.
- Markets and sells its products through direct sales, distributors, and its website.
How Does TXN Make Money?
- Designs, manufactures, and sells semiconductors to electronics designers and manufacturers.
- Generates revenue through the sale of analog and embedded processing products.
- Operates through two segments: Analog and Embedded Processing.
- Utilizes a direct sales force and a network of distributors to reach customers globally.
What Industry Does TXN Operate In?
Texas Instruments operates in the semiconductor industry, a sector characterized by rapid technological advancements and cyclical demand. The industry is experiencing growth driven by increasing demand for semiconductors in various applications, including automotive, industrial, and consumer electronics. The market is competitive, with key players like Broadcom Inc. (AVGO), Micron Technology, Inc. (MU), Advanced Micro Devices, Inc. (AMD), Intel Corporation (INTC), and QUALCOMM Incorporated (QCOM). TXN differentiates itself through its focus on analog and embedded processing solutions, its strong manufacturing capabilities, and its extensive distribution network.
Who Are TXN's Key Customers?
- Electronics designers and manufacturers worldwide.
- Companies in the industrial, automotive, personal electronics, communications equipment, and enterprise systems markets.
- Customers who require power management and signal chain solutions.
- Organizations that need microcontrollers, DSPs, and application processors.
Net sellingInsider Activity
Over the past six months, Texas Instruments Incorporated insiders filed 30 SEC Form 4 transactions — 22 sales and 8 purchases. On net that is roughly 115K shares disposed (about $35.4M), a signal worth weighing alongside the fundamentals.
FY2026 estForward Outlook
Wall Street analysts project Texas Instruments Incorporated revenue of about $21.02B for fiscal 2026, with EPS near $7.70. The estimate reflects 25 contributing analysts.
F-Score 7/9Financial Health
Texas Instruments Incorporated's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 12.77 places it in the safe zone, indicating low near-term bankruptcy risk.
ROE 32%Key Financial Metrics
Return on equity for Texas Instruments Incorporated stands at 32.5%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 15.6%, showing how much profit it generates from its asset base. TXN trades at a trailing price-to-earnings ratio of 54.68, above the Technology sector average of ~38x. Its free cash flow yield is 1.4%, a gauge of the cash the business throws off relative to its market value. A current ratio of 4.46 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.0%, the inverse of the P/E and a quick read on earnings relative to price.
Texas Instruments Incorporated (TXN) Valuation Context
Valued at $266.73B, TXN is classified as a mega-cap stock. Relative to its peer group, TXN's quantitative score of 80/100 is roughly in line with the peer average of 78/100.
Company Profile
Texas Instruments Incorporated operates in the Semiconductors industry within the Technology sector. It is headquartered in Dallas, US. The company is led by CEO Haviv Ilan. TXN has traded publicly since 1972.
TXN Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recientemente, varios ejecutivos de Texas Instruments han comprado acciones, lo que sugiere confianza en el futuro de la empresa.
- La comunidad de inversores ha mostrado un aumento en el optimismo, impulsado por la demanda constante de semiconductores en diversos sectores.
- Las recientes innovaciones en productos de Texas Instruments han sido bien recibidas, lo que mejora la percepción del mercado.
- El enfoque en la sostenibilidad y la eficiencia energética ha resonado positivamente entre los consumidores y los inversores.
Bear Case
- A pesar de la actividad positiva de los insiders, la volatilidad en la cadena de suministro global sigue generando incertidumbre sobre el crecimiento futuro.
- El sentimiento en algunas plataformas de redes sociales ha mostrado preocupaciones sobre la competencia creciente en el sector de semiconductores.
- Recientes informes sugieren que la demanda podría estabilizarse, lo que podría afectar los márgenes de beneficio a corto plazo.
- Algunos analistas han expresado preocupaciones sobre la exposición de Texas Instruments a mercados cíclicos, lo que podría afectar su rendimiento en el futuro.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · April 2026
From the Earnings Call
“We expect TI's revenue in the range of $5 billion to $5.4 billion and earnings per share to be in the range of $1.77 to $2.05.”
— Rafael Lizardi, CFO
“Revenue was $4.8 billion, an increase of 9% sequentially and an increase of 19% year-over-year.”
— Haviv Ilan, CEO
TXN Q1 FY2026 earnings call transcript · 2026-04-22
TXN Latest News
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Stocks Set to Open Higher as Tech Bounces, U.S. Jobs Data and Warsh’s Remarks Awaited
Barchart · Jun 29, 2026
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Shares of semiconductor and chip companies are trading lower after reports suggested that OpenAI may delay its IPO until next year. Investors may anticipate the industry to face a weakening demand after notes raised concerns about a slowdown in the AI company's infrastructure spending.
Benzinga · Jun 26, 2026
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Stocks Slide as Artificial Intelligence Frenzy Eases
Barchart · Jun 23, 2026
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Stocks Mostly Lower on Weakness in Megacap Tech and Software Stocks
Barchart · Jun 22, 2026
TXN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for TXN.
Price Targets
Consensus target: $206.76
TXN MoonshotScore
What does this score mean?
The MoonshotScore rates TXN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Stocks Set to Open Higher as Tech Bounces, U.S. Jobs Data and Warsh’s Remarks Awaited
Shares of semiconductor and chip companies are trading lower after reports suggested that OpenAI may delay its IPO until next year. Investors may anticipate the industry to face a weakening demand after notes raised concerns about a slowdown in the AI company's infrastructure spending.
Stocks Slide as Artificial Intelligence Frenzy Eases
Stocks Mostly Lower on Weakness in Megacap Tech and Software Stocks
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2 min readLeadership: Haviv Ilan
CEO
Haviv Ilan is the Chief Executive Officer of Texas Instruments, leading a global team of 34,000 employees. He has been with Texas Instruments for over two decades, holding various leadership positions across different business units. His experience spans product development, marketing, and sales. Ilan holds a Bachelor's degree in Electrical Engineering and a Master's degree in Business Administration.
Track Record: Since becoming CEO, Haviv Ilan has focused on strengthening TXN's position in the analog and embedded processing markets. He has overseen strategic investments in research and development, manufacturing capacity, and customer support. Under his leadership, TXN has continued to generate strong free cash flow and return capital to shareholders through dividends and share repurchases.
TXN Technology Stock FAQ
What does Texas Instruments Incorporated do?
Texas Instruments Incorporated (TXN) is a global semiconductor company that designs, manufactures, and sells semiconductors to electronics designers and manufacturers worldwide. The company operates through two segments: Analog and Embedded Processing. The Analog segment provides power management and signal chain products, while the Embedded Processing segment offers microcontrollers, digital signal processors (DSPs), and application processors. TXN's products are used in a wide range of applications, including industrial, automotive, personal electronics, communications equipment, and enterprise systems.
What do analysts say about TXN stock?
Analyst consensus on Texas Instruments Incorporated (TXN) is generally positive, reflecting the company's strong market position and growth prospects. Key valuation metrics, such as the P/E ratio of 54.7, suggest that investors expect future earnings growth. Analysts cite TXN's focus on the automotive and industrial sectors, its efficient operations, and its strong free cash flow generation as key growth considerations. However, analysts also note potential risks, such as cyclical downturns in the semiconductor industry and increasing competition.
What are the main risks for TXN?
The main risks for Texas Instruments Incorporated (TXN) include cyclical downturns in the semiconductor industry, which can lead to reduced demand for its products. Intense competition from established and emerging semiconductor companies poses a threat to TXN's market share and profitability. Disruptions in the supply chain and increased raw material costs can negatively impact TXN's manufacturing operations. Geopolitical tensions and trade restrictions can also affect TXN's global operations and sales.
How does Texas Instruments Incorporated generate revenue from its technology products?
Texas Instruments Incorporated generates revenue primarily through the sale of its analog and embedded processing semiconductors. The company's revenue streams are diversified across various end markets, including industrial, automotive, personal electronics, communications equipment, and enterprise systems. TXN sells its products through direct sales, distributors, and its website. While specific subscription models are not a primary revenue driver, TXN benefits from recurring revenue through long-term customer relationships and ongoing demand for its products in various applications.
How does Texas Instruments Incorporated invest in research and development?
Texas Instruments Incorporated invests significantly in research and development (R&D) to maintain its competitive edge and drive innovation. While the exact R&D spending as a percentage of revenue is not provided, TXN consistently allocates a substantial portion of its resources to R&D activities. Key innovation areas include the development of advanced analog and embedded processing technologies, power management solutions, and microcontrollers. TXN's patent portfolio is extensive, reflecting its commitment to protecting its intellectual property and technological advancements.
What are the key factors to evaluate for TXN?
Texas Instruments Incorporated (TXN) holds an AI score of 80/100 (high). P/E: 54.7x vs the S&P 500's ~20-25x. Analysts target $206.76 (-29%). Not financial advice.
How frequently does TXN data refresh on this page?
TXN prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven TXN's recent stock price performance?
Texas Instruments Incorporated (TXN) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong market position in analog and embedded processing. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available data as of 2026-05-09.
- Financial data is based on the most recent filings and may be subject to change.