Texas Instruments Incorporated
TXN
$0.00
-0.73%
Texas Instruments is a global semiconductor company primarily focused on analog chips and embedded processors. It is the world's largest maker of analog chips, holding a leading market position with a broad portfolio used across diverse electronics applications.
TXN
Texas Instruments Incorporated
$0.00
Related headlines
Investment Opinion: Should I buy TXN Today?
Based on comprehensive analysis of the available data, the synthesized analyst rating for Texas Instruments is HOLD. The company demonstrates strong fundamental quality with market leadership, robust profitability, and financial health. However, current valuation appears full relative to growth prospects, and the stock has shown significant recent volatility. While the dividend provides some downside protection, the risk-reward appears balanced at current levels, suggesting investors should wait for more attractive entry points or clearer signs of accelerating growth.
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TXN 12-Month Price Forecast
Texas Instruments presents a mixed picture with strong fundamentals offset by full valuation. The company's quality characteristics are undeniable, but current pricing appears to reflect much of the positive outlook. The neutral stance reflects balanced risk-reward at current levels.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Texas Instruments Incorporated's 12-month outlook, with a consensus price target around $0.00 and implied upside of — versus the current price.
Average Target
$0.00
8 analysts
Implied Upside
—
vs. current price
Analyst Count
8
covering this stock
Price Range
$0 - $0
Analyst target range
Analyst coverage data for target prices and consensus ratings is not available in the provided inputs. The institutional ratings list shows recent actions from various firms, including 'Buy' from Rosenblatt, UBS, and Benchmark, 'Hold' or 'Neutral' from several others, and an 'Underperform' from Mizuho, indicating a mixed but generally cautious sentiment. No sufficient analyst coverage data for a consensus target price is available.
Bulls vs Bears: TXN Investment Factors
Texas Instruments combines strong fundamental strengths with concerning valuation levels. The company's market leadership, profitability, and financial health are offset by premium pricing and cyclical risks. The stock appears to be at a crossroads between its quality characteristics and valuation concerns.
Bullish
- Market leadership in analog chips: World's largest analog chipmaker with broad portfolio and strong market position.
- Robust profitability and margins: High net margin of 26.3% and strong ROE of 30.7%.
- Strong balance sheet and liquidity: Healthy current ratio of 4.35 and manageable debt-to-equity of 0.95.
- Positive revenue growth: Q4 2025 revenue grew 10.38% year-over-year.
Bearish
- High valuation multiples: Trailing P/E of 31.5 and forward P/E of 24.5 appear elevated.
- Recent earnings moderation: Net income and margins have softened from recent peak levels.
- Cyclical industry exposure: Semiconductor sector is cyclical and sensitive to economic downturns.
- Recent stock price volatility: Significant price swings, down 8.47% over past month.
TXN Technical Analysis
The stock has exhibited significant volatility over the past six months, with a strong rally from a low near $154 in November 2025 to a peak above $226 in February 2026, followed by a recent pullback. In the short term, the stock is down 8.47% over the past month, underperforming the S&P 500's -5.25% return, but it has gained 11.90% over the past three months, significantly outperforming the broader market's -4.63% decline. The current price of $194.14 sits roughly in the middle of its 52-week range ($139.95 to $231.32), representing a recovery from the lows but a retreat from recent highs.
Beta
0.99
0.99x market volatility
Max Drawdown
-30.7%
Largest decline past year
52-Week Range
$140-$231
Price range past year
Annual Return
+9.4%
Cumulative gain past year
| Period | TXN Return | S&P 500 |
|---|---|---|
| 1m | -3.8% | -4.3% |
| 3m | +9.8% | -4.0% |
| 6m | +8.1% | -2.0% |
| 1y | +9.4% | +22.2% |
| ytd | +9.8% | -3.8% |
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TXN Fundamental Analysis
Revenue for Q4 2025 was $4.42 billion, representing a 10.38% year-over-year growth from the same quarter in 2024. Profitability remains robust with a net margin of 26.3% for the quarter, though it has moderated from higher levels seen in 2023. The company maintains a strong balance sheet with a debt-to-equity ratio of 0.95 and a very healthy current ratio of 4.35, indicating ample liquidity. Operational efficiency is solid, with a return on equity (ROE) of 30.7% and a return on assets (ROA) of 10.9%, demonstrating effective use of shareholder capital and assets.
Quarterly Revenue
$4.4B
2025-12
Revenue YoY Growth
+0.10%
YoY Comparison
Gross Margin
+0.55%
Latest Quarter
Free Cash Flow
$2.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is TXN Overvalued?
Given the company's positive net income, the primary valuation metric is the P/E ratio. The trailing P/E is 31.5, while the forward P/E is 24.5, suggesting the market is pricing in future earnings growth. The price-to-sales (P/S) ratio is 8.9, and the enterprise-value-to-EBITDA (EV/EBITDA) is 20.6. Peer comparison data is not available in the provided inputs to assess these multiples against industry averages.
PE
31.5x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 15x~39x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
20.6x
Enterprise Value Multiple
Investment Risk Disclosure
Texas Instruments faces several key risks. Financially, the company's high valuation multiples (P/E 31.5, P/S 8.9) create vulnerability to multiple compression if growth expectations aren't met. The semiconductor industry's cyclical nature exposes TXN to economic downturns and inventory corrections. Recent quarterly results show moderating profitability from peak levels, suggesting potential margin pressure. Market risks include recent stock volatility with an 8.47% decline over the past month, though it has outperformed the S&P 500 over three months. The mixed analyst sentiment indicates uncertainty about near-term performance. Balance sheet risks appear manageable with strong liquidity, but the debt-to-equity ratio of 0.95 represents financial leverage that could pressure results during downturns.
FAQ
Key risks include: 1) Valuation compression risk with high multiples (P/E 31.5), 2) Cyclical semiconductor industry exposure to economic downturns, 3) Recent margin moderation from peak levels, 4) Stock price volatility with 30.7% maximum drawdown, and 5) Mixed analyst sentiment creating uncertainty. The company's debt-to-equity of 0.95 also represents financial leverage risk in a downturn.
Our 12-month outlook suggests a base case target range of $190-$220 (50% probability), with bull case reaching $226-$240 (30% probability) if growth accelerates, and bear case falling to $160-$180 (20% probability) on economic weakness. The current price of $194.14 sits near the lower end of our base case range, suggesting limited near-term upside without positive catalysts.
TXN appears fairly valued to slightly overvalued based on current metrics. The trailing P/E of 31.5 and forward P/E of 24.5 are elevated relative to historical semiconductor averages, though justified by the company's strong profitability (26.3% net margin) and market leadership. The P/S ratio of 8.9 suggests the market is pricing in premium growth expectations that may be challenging to sustain.
TXN is a high-quality company but may not be an optimal buy at current levels. The stock trades at a forward P/E of 24.5 and P/S of 8.9, which appears full given the company's ~10% revenue growth. While the 3.17% dividend yield provides some support, valuation concerns suggest waiting for a more attractive entry point below $180 for better risk-adjusted returns.
TXN is better suited for long-term investors. The company's market leadership, strong profitability (ROE 30.7%), and dividend provide durable characteristics for buy-and-hold strategies. Short-term traders face challenges from recent volatility (down 8.47% monthly) and valuation sensitivity. Long-term investors can benefit from the company's competitive advantages while riding out cyclical fluctuations.