ABN Amro Investment Solutions v 1. čtvrtletí zvýšila svůj podíl v Texas Instruments o 10,3 % na 47 988 akcií. Firma zároveň oznámila čtvrtletní zisk 2,14 USD na akcii a tržby 5,46 miliardy USD, obojí nad odhady.
ABN Amro Investment Solutions grew its position in shares of Texas Instruments Incorporated (NASDAQ:TXN – Free Report) by 10.3% in the first quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 47,988 shares of the semiconductor company’s stock after buying an additional 4,463 shares during the quarter. ABN Amro Investment Solutions’ holdings in Texas Instruments were worth $9,316,000 as of its most recent filing with the SEC.
Several other hedge funds also recently made changes to their positions in the company. Strategic Wealth Investment Group LLC purchased a new stake in Texas Instruments in the 2nd quarter valued at approximately $25,000. Portus Wealth Advisors LLC acquired a new stake in shares of Texas Instruments in the 1st quarter valued at approximately $27,000. High Point Wealth Management LLC purchased a new stake in shares of Texas Instruments in the fourth quarter valued at approximately $25,000. Advocate Investing Services LLC acquired a new position in Texas Instruments during the fourth quarter worth $25,000. Finally, Scarborough Advisors LLC purchased a new position in Texas Instruments in the first quarter worth $29,000. Institutional investors and hedge funds own 84.99% of the company’s stock.
Insider Activity In other Texas Instruments news, VP Mark T. Roberts sold 28,080 shares of the firm’s stock in a transaction dated Thursday, April 30th. The stock was sold at an average price of $280.34, for a total value of $7,871,947.20. Following the sale, the vice president directly owned 53,809 shares of the company’s stock, valued at approximately $15,084,815.06. This trade represents a 34.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP Mohammad Yunus sold 51,098 shares of Texas Instruments stock in a transaction dated Wednesday, April 29th. The shares were sold at an average price of $270.44, for a total value of $13,818,943.12. Following the completion of the sale, the vice president owned 52,856 shares of the company’s stock, valued at $14,294,376.64. This trade represents a 49.15% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 303,475 shares of company stock valued at $85,666,638 in the last three months. Company insiders own 0.60% of the company’s stock.
Texas Instruments Stock Up 1.0% TXN stock opened at $294.19 on Thursday. The stock has a market capitalization of $267.74 billion, a P/E ratio of 50.38, a PEG ratio of 1.49 and a beta of 1.32. The company has a debt-to-equity ratio of 0.77, a quick ratio of 2.94 and a current ratio of 4.46. Texas Instruments Incorporated has a one year low of $152.73 and a one year high of $334.03. The company has a 50 day moving average price of $301.99 and a two-hundred day moving average price of $246.39.
Texas Instruments (NASDAQ:TXN – Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share for the quarter, beating the consensus estimate of $1.91 by $0.23. Texas Instruments had a return on equity of 32.49% and a net margin of 29.11%.The company had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.26 billion. During the same period in the previous year, the firm posted $1.41 EPS. Texas Instruments’s revenue was up 22.8% on a year-over-year basis. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. As a group, sell-side analysts expect that Texas Instruments Incorporated will post 7.69 EPS for the current year.
Texas Instruments Announces Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 11th. Investors of record on Friday, July 31st will be given a dividend of $1.42 per share. The ex-dividend date is Friday, July 31st. This represents a $5.68 annualized dividend and a yield of 1.9%. Texas Instruments’s dividend payout ratio is 97.26%.
Key Texas Instruments News Here are the key news stories impacting Texas Instruments this week:
Positive Sentiment: Texas Instruments beat Q2 earnings and revenue estimates, signaling better-than-expected operating performance. Texas Instruments Tops Q2 Earnings and Revenue Estimates Positive Sentiment: Management raised Q3 guidance above Wall Street expectations, which supports the case for an improving demand backdrop in industrial, automotive and AI-related chip markets. Texas Instruments forecasts quarterly revenue above estimates Positive Sentiment: Revenue, profit and EPS all increased year over year, showing a healthier operating trend versus the same quarter last year. Texas Instruments Posts Higher Second-Quarter Profit, Revenue as Sales Increase Neutral Sentiment: Despite the solid report, TXN weakened in after-hours trading as investors likely focused on valuation and whether the improvement is durable. Conference Call and Press Release Wall Street Analyst Weigh In TXN has been the topic of several research reports. Robert W. Baird upped their target price on Texas Instruments from $225.00 to $300.00 and gave the company an “outperform” rating in a report on Thursday, April 23rd. KeyCorp lifted their price target on Texas Instruments from $325.00 to $390.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 14th. JPMorgan Chase & Co. boosted their price objective on shares of Texas Instruments from $227.00 to $280.00 and gave the stock an “overweight” rating in a research report on Thursday, April 23rd. The Goldman Sachs Group increased their price objective on shares of Texas Instruments from $175.00 to $200.00 and gave the company a “sell” rating in a research note on Thursday, April 23rd. Finally, Wolfe Research restated an “outperform” rating and set a $315.00 target price on shares of Texas Instruments in a report on Thursday, April 23rd. Thirteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $290.75.
Read Our Latest Research Report on Texas Instruments
Texas Instruments Profile (Free Report)
Texas Instruments Inc (NASDAQ: TXN) is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company’s products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI’s business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.
TI’s product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.
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« PREVIOUS HEADLINEABN Amro Investment Solutions Makes New $5.94 Million Investment in TE Connectivity Ltd. $TEL
Texas Instruments oznámila ve 2. čtvrtletí tržby 5,46 miliardy USD, čistý zisk 1,98 miliardy USD a EPS 2,14 USD. Tržby meziročně vzrostly o 23 % a společnost očekává ve 3. čtvrtletí tržby 5,65 až 6,15 miliardy USD a EPS 2,23 až 2,57 USD.
Conference call at 3:30 p.m. Central time today on ti.com/ir
, /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) today reported second quarter revenue of $5.46 billion, net income of $1.98 billion and earnings per share of $2.14. Earnings per share included a 5-cent benefit that was not in the company's original guidance.
Regarding the company's performance and returns to shareholders, Haviv Ilan, TI's chairman, president and CEO, made the following comments:
"Revenue increased 13% sequentially and 23% from the same quarter a year ago with broad growth led by industrial, data center and automotive. "Our cash flow from operations of $8.7 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production. Free cash flow for the same period was $6.5 billion. "Over the past 12 months we invested $3.9 billion in R&D and SG&A, invested $3.3 billion in capital expenditures and returned $5.8 billion to owners. "TI's third quarter outlook is for revenue in the range of $5.65 billion to $6.15 billion and earnings per share between $2.23 and $2.57." Free cash flow, a non-GAAP financial measure, is cash flow from operations less capital expenditures, plus proceeds from U.S. CHIPS and Science Act (CHIPS Act) incentives.
Earnings summary
(In millions, except per-share amounts)
Q2 2026
Q2 2025
Change
Revenue
$
5,463
$
4,448
23 %
Operating profit
$
2,310
$
1,563
48 %
Net income
$
1,980
$
1,295
53 %
Earnings per share
$
2.14
$
1.41
52 %
Cash generation
Trailing 12 Months
(In millions)
Q2 2026
Q2 2026
Q2 2025
Change
Cash flow from operations
$
2,703
$
8,667
$
6,439
35 %
Free cash flow
$
2,738
$
6,534
$
1,763
271 %
Free cash flow % of revenue
33.6 %
10.6 %
Cash return
Trailing 12 Months
(In millions)
Q2 2026
Q2 2026
Q2 2025
Change
Dividends paid
$
1,295
$
5,112
$
4,900
4 %
Stock repurchases
$
27
$
707
$
1,810
(61) %
Total cash returned
$
1,322
$
5,819
$
6,710
(13) %
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Income
For Three Months Ended
June 30,
(In millions, except per-share amounts)
2026
2025
Revenue
$
5,463
$
4,448
Cost of revenue (COR)
2,111
1,873
Gross profit
3,352
2,575
Research and development (R&D)
535
527
Selling, general and administrative (SG&A)
490
485
Acquisition charges
17
—
Operating profit
2,310
1,563
Other income (expense), net (OI&E)
69
48
Interest and debt expense
141
133
Income before income taxes
2,238
1,478
Provision for income taxes
258
183
Net income
$
1,980
$
1,295
Diluted earnings per common share
$
2.14
$
1.41
Average shares outstanding:
Basic
912
908
Diluted
920
912
Cash dividends declared per common share
$
1.42
$
1.36
Supplemental Information
(Quarterly, except as noted)
Provision for income taxes is based on the following:
Operating taxes (calculated using the estimated annual effective tax rate)
$
309
$
199
Discrete tax items
(51)
(16)
Provision for income taxes (effective taxes)
$
258
$
183
A portion of net income is allocated to unvested restricted stock units (RSUs) on which we pay dividend equivalents. Diluted
EPS is calculated using the following:
Net income
$
1,980
$
1,295
Income allocated to RSUs
(11)
(7)
Income allocated to common stock for diluted EPS
$
1,969
$
1,288
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Balance Sheets
June 30,
(In millions, except par value)
2026
2025
Assets
Current assets:
Cash and cash equivalents
$
3,660
$
3,044
Short-term investments
3,341
2,315
Accounts receivable, net of allowances of ($22) and ($24)
Common stock, $1 par value. Shares authorized – 2,400; shares issued – 1,741
1,741
1,741
Paid-in capital
5,129
4,245
Retained earnings
53,161
52,249
Treasury common stock at cost
Shares: June 30, 2026 – 828; June 30, 2025 – 832
(41,941)
(41,676)
Accumulated other comprehensive income (loss), net of taxes (AOCI)
(83)
(156)
Total stockholders' equity
18,007
16,403
Total liabilities and stockholders' equity
$
35,882
$
34,933
TEXAS INSTRUMENTS INCORPORATED AND SUBSIDIARIES
Consolidated Statements of Cash Flows
For Three Months Ended
June 30,
(In millions)
2026
2025
Cash flows from operating activities
Net income
$
1,980
$
1,295
Adjustments to net income:
Depreciation
547
460
Amortization of capitalized software
21
21
Stock compensation
127
129
Gains on sales of assets
(8)
—
Deferred taxes
(62)
(50)
Increase (decrease) from changes in:
Accounts receivable
(275)
(74)
Inventories
90
(125)
Prepaid expenses and other current assets
2
(9)
Accounts payable and accrued expenses
101
92
Accrued compensation
142
172
Income taxes payable
(14)
(71)
Changes in funded status of retirement plans
3
(18)
Other
49
38
Cash flows from operating activities
2,703
1,860
Cash flows from investing activities
Capital expenditures
(514)
(1,305)
Proceeds from CHIPS Act incentives
549
—
Proceeds from asset sales
32
—
Purchases of short-term investments
(2,407)
(1,192)
Proceeds from short-term investments
636
1,131
Other
2
31
Cash flows from investing activities
(1,702)
(1,335)
Cash flows from financing activities
Proceeds from issuance of long-term debt
—
1,199
Dividends paid
(1,295)
(1,235)
Stock repurchases
(27)
(302)
Proceeds from common stock transactions
445
115
Other
(13)
(21)
Cash flows from financing activities
(890)
(244)
Net change in cash and cash equivalents
111
281
Cash and cash equivalents at beginning of period
3,549
2,763
Cash and cash equivalents at end of period
$
3,660
$
3,044
Supplemental cash flow information
Investment tax credit (ITC) used to reduce income taxes payable
$
301
$
203
Proceeds from CHIPS Act incentives
549
—
Total cash benefit related to the CHIPS Act
$
850
$
203
Segment results
(In millions)
Q2 2026
Q2 2025
Change
Analog:
Revenue
$
4,365
$
3,452
26 %
Operating profit
$
1,992
$
1,325
50 %
Embedded Processing:
Revenue
$
788
$
679
16 %
Operating profit
$
168
$
85
98 %
Other:
Revenue
$
310
$
317
(2) %
Operating profit *
$
150
$
153
(2) %
* Includes Acquisition charges
Non-GAAP financial information
This release includes references to free cash flow and ratios based on that measure. These are financial measures that were not prepared in accordance with GAAP. Free cash flow is calculated as cash flows from operating activities (also referred to as cash flow from operations) less capital expenditures, plus proceeds from CHIPS Act incentives.
We believe that free cash flow and the associated ratios provide insight into our liquidity, our cash-generating capability and the amount of cash potentially available to return to shareholders, as well as insight into our financial performance. These non-GAAP measures are supplemental to the comparable GAAP measures.
Reconciliation to the most directly comparable GAAP measures is provided in the table below.
For Three
Months
Ended
June 30,
For 12
Months
Ended
June 30,
(In millions)
2026
2026
2025
Change
Cash flow from operations (GAAP) *
$
2,703
$
8,667
$
6,439
35 %
Capital expenditures
(514)
(3,312)
(4,936)
Proceeds from CHIPS Act incentives
549
1,179
260
Free cash flow (non-GAAP)
$
2,738
$
6,534
$
1,763
271 %
Revenue
$
19,453
$
16,675
Cash flow from operations as a percentage of revenue (GAAP)
44.6 %
38.6 %
Free cash flow as a percentage of revenue (non-GAAP)
33.6 %
10.6 %
* Includes cash benefits of $301 million, $433 million and $479 million from the CHIPS Act ITC used to reduce income taxes payable for the three
months ended June 30, 2026, and the twelve months ended June 30, 2026 and 2025, respectively.
This release also includes references to operating taxes, a non-GAAP term we use to describe taxes calculated using the estimated annual effective tax rate, a GAAP measure that by definition does not include discrete tax items. We believe the term operating taxes helps to differentiate from effective taxes, which include discrete tax items.
Notice regarding forward-looking statements
This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as TI or its management "believes," "expects," "anticipates," "foresees," "forecasts," "estimates" or other words or phrases of similar import. Similarly, statements herein that describe TI's business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statements.
We urge you to carefully consider the following important factors that could cause actual results to differ materially from the expectations of TI or our management:
Economic, social and political conditions, and natural events in the countries in which we, our customers or our suppliers operate, including global trade policies; Our ability to compete in products and prices in an intensely competitive industry; Market demand for semiconductors, particularly in the industrial and automotive markets, and customer demand that differs from forecasts; Losses or curtailments of purchases from key customers or the timing and amount of customer inventory adjustments; Evolving cybersecurity and other threats relating to our information technology systems or those of our customers, suppliers and other third parties; Our ability to successfully implement and realize opportunities from strategic, business and organizational changes, or our ability to realize our expectations regarding the amount and timing of associated restructuring charges and cost savings; Our ability to develop, manufacture and market innovative products in a rapidly changing technological environment, our timely implementation of new manufacturing technologies and installation of manufacturing equipment, and our ability to realize expected returns on significant investments in manufacturing capacity; Availability and cost of key materials, utilities, manufacturing equipment, third-party manufacturing services and manufacturing technology; Our ability to retain, train and recruit skilled personnel and effectively manage key employee succession; Product liability, warranty or other claims relating to our products, software, manufacturing, delivery, services, design or communications, or recalls by our customers for a product containing one of our parts; Financial difficulties of our distributors or semiconductor distributors' promotion of competing product lines to our detriment; or disputes with current or former distributors; Our ability to maintain or improve profit margins, including our ability to utilize our manufacturing facilities at sufficient levels to cover our fixed operating costs, in an intensely competitive and cyclical industry and changing regulatory environment; Compliance with or changes in the complex laws, rules and regulations to which we are or may become subject, or actions of enforcement authorities, that restrict our ability to operate our business or subject us to fines, penalties or other legal liability; Changes in tax law and accounting standards that impact the tax rate applicable to us, the jurisdictions in which profits are determined to be earned and taxed, adverse resolution of tax audits, increases in tariff rates, and the ability to realize deferred tax assets; Our ability to maintain and enforce a strong intellectual property portfolio and maintain freedom of operation in all jurisdictions where we conduct business; or our exposure to infringement claims; Our ability to make principal and interest payments on our debt when due; Instability in the global credit and financial markets; and Impairments of our non-financial assets. For a more detailed discussion of these factors, see the Risk factors discussion in Item 1A of TI's most recent Form 10-K. The forward-looking statements included in this release are made only as of the date of this release, and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. If we do update any forward-looking statement, you should not infer that we will make additional updates with respect to that statement or any other forward-looking statement.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
Texas Instruments má po skončení obchodování oznámit hospodářské výsledky za 2. čtvrtletí; analytici čekají EPS 1,92 USD a výnosy 5,24 mld. USD. Akcie v úterý vzrostly o 2,6 %.
Texas Instruments Incorporated (NASDAQ:TXN) will release its second quarter earnings report after the closing bell on Wednesday, July 22.
Analysts expect the Dallas, Texas-based company to report quarterly earnings of $1.92 per share, up from $1.41 per share in the year-ago period. The consensus estimate for Texas Instruments’ quarterly revenue is $5.24 billion. It reported $4.45 billion last year, according to Benzinga Pro.
On July 16, the company’s board of directors declared a quarterly cash dividend of $1.42 per share.
Texas Instruments shares rose 2.6% to close at $291.30 on Tuesday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying TXN stock? Here’s what analysts think:
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Texas Instruments čeká na výsledky za 2. čtvrtletí 2026 a trh počítá s tržbami ve výši 5,23 miliardy USD a EPS 1,91 USD, což by znamenalo meziroční růst. Výsledky společnost zveřejní 22. července po uzavření trhu.
Key Takeaways TXN's Q2 revenue and EPS estimates imply year-over-year growth of 17.5% and 35.5%, respectively.Analog demand is rising on improving industrial sales, data center investment and stable automotive demand.Embedded growth may accelerate, though China exposure and U.S.-China trade tensions remain risks. Texas Instruments Incorporated (TXN - Free Report) is likely to beat earnings estimates when it releases its second-quarter 2026 results on July 22, after market close.
The company anticipates revenues between $5 billion and $5.4 billion for the second quarter. The Zacks Consensus Estimate is pegged at $5.23 billion, suggesting growth of 17.5% from the year-ago period's reported figure.
Texas Instruments expects earnings per share between $1.77 and $2.05. The Zacks Consensus Estimate for second-quarter earnings is pinned at $1.91 per share, implying growth of 35.5% from the year-ago period's reported figure. The consensus mark for earnings has been revised upward over the past seven days.
Image Source: Zacks Investment Research
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with an average surprise of 6.96%.
Q2 Earnings Whispers for Texas InstrumentsOur proven model predicts an earnings beat for Texas Instruments this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here.
Earnings ESP of TXN: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.96) and the Zacks Consensus Estimate ($1.91), is +2.66%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Texas Instruments’ Zacks Rank: TXN presently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence TXN’s Q2 ResultsTexas Instruments’ second-quarter performance is likely to have benefited from strong demand for its analog and embedded chips. The company’s analog business remains the largest contributor, which is showing renewed strength supported by improving industrial demand, stronger data center investments and stable automotive sales.
Industrial revenues rose more than 30% year over year in the first quarter of 2026, with growth spreading across regions and customer groups. At the same time, Texas Instruments is benefiting from rising demand for power-management chips used in artificial intelligence (AI)-driven data center infrastructure. During the first-quarter earnings call, management stated that data center revenues surged roughly 90% year over year.
Overall, analog revenues increased 22% year over year to $3.92 billion, and the trend is likely to have continued in the second quarter. Our model estimates for the analog division’s second-quarter revenues are pegged at $4.08 billion, indicating 18.1% year-over-year growth.
Gradually improving end-market demand and easing customer inventory adjustments are likely to have aided growth in the embedded processing business during the second quarter. The segment is anticipated to have benefited from improving industrial demand and increasing semiconductor content across connected devices, vehicles and factory automation.
In the first quarter, embedded processing revenues increased 12% year over year to $723 million. The growth rate is likely to have accelerated in the second quarter. Our model estimates for the embedded processing division’s second-quarter revenues are pegged at $799 million, indicating 17.7% year-over-year growth.
However, Texas Instruments’ second-quarter performance is likely to have been affected by rising geopolitical tensions, and the ongoing U.S.-China trade and tariff wars. TXN is a major player in China, accounting for more than 20% of its annual revenues in 2025.
TXN’s Stock Price Performance & ValuationTexas Instruments shares have surged 68.3% year to date, outperforming the Zacks Semiconductor – General industry, which has risen 22.7%. Compared to other industry peers, the stock has outpaced NVIDIA Corporation (NVDA - Free Report) and Amtech Systems, Inc. (ASYS - Free Report) but has underperformed Intel Corporation (INTC - Free Report) . Shares of NVIDIA, Amtech Systems and Intel have soared 11%, 33.2% and 162.3%, respectively.
Let us look at the value Texas Instruments offers investors at current levels. Currently, TXN is trading at a premium, with a forward 12-month P/E of 35.26X compared with the industry’s 22.94X.
Texas Instruments Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
Compared with semiconductor giants, the stock trades at a higher multiple than NVIDIA and Amtech Systems, while at a lower multiple than Intel. At present, NVIDIA, Amtech Systems and Intel have forward 12-month P/E of 19.63X, 23.87X and 76.49X, respectively.
Investment Thesis on TXN StockUnlike NVIDIA or AMD, Texas Instruments does not build AI accelerators. Instead, it supplies the analog and embedded chips that keep AI infrastructure running. Its products manage power, convert signals, control motors, regulate cooling systems and enable connectivity across data centers, industrial equipment and automotive applications. These components may receive less attention than AI processors, but they are essential as AI servers become more power-hungry and increasingly complex.
Every new AI data center requires far more power management and sensing components than traditional computing infrastructure. This is creating a meaningful opportunity for Texas Instruments. Rather than competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout — a trend that could prove more durable over time.
The company's data center business reached an annual revenue run rate of roughly $1.2 billion in 2025, growing more than 50% year over year. In the first quarter of 2026, data center revenues jumped 90% from the prior-year period and increased 25% sequentially. These growth rates highlight the company’s growing importance in AI infrastructure and suggest that this market could remain a major contributor for years.
Texas Instruments is also taking a different approach to manufacturing than many semiconductor companies. Instead of relying heavily on external foundries, management plans to manufacture more than 95% of its wafers internally by 2030.
This strategy requires significant investment today but offers several long-term advantages. Greater manufacturing control can improve supply-chain reliability, reduce production costs over time and protect margins during industry shortages.
Conclusion: Hold Texas Instruments Stock for NowTXN is benefiting from rising AI infrastructure spending, rapidly expanding data center demand and a manufacturing strategy that should continue aiding its financial results. With AI infrastructure spending still in the early stages of a multi-year expansion cycle, Texas Instruments looks well-positioned to deliver steady growth for years to come. Although the stock trades at a premium valuation, that premium appears justified, given its consistent earnings growth. All these make Texas Instruments stock worth holding.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The board of directors of Texas Instruments Incorporated (Nasdaq: TXN) today declared a quarterly cash dividend of $1.42 per share of common stock, payable August 11, 2026, to stockholders of record on July 31, 2026.
About Texas Instruments
Texas Instruments Incorporated (Nasdaq: TXN) is a global semiconductor company that designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, data center, personal electronics and communications equipment. At our core, we have a passion to create a better world by making electronics more affordable through semiconductors. This passion is alive today as each generation of innovation builds upon the last to make our technology more reliable, more affordable and lower power, making it possible for semiconductors to go into electronics everywhere. Learn more at TI.com.
Texas Instruments čeká v roce 2026 kapitálové výdaje 2–3 mld. USD, tedy o 34–56 % méně než v roce 2025. Volný peněžní tok v 1. čtvrtletí 2026 vzrostl na 1,4 mld. USD z minus 14 mil. USD před rokem.
Key Takeaways Texas Instruments expects 2026 CapEx of $2B-$3B, down 34%-56% from 2025.TXN's first-quarter free cash flow rose to $1.4B from negative $14M a year earlier.Texas Instruments sees free cash flow per share topping $8 if demand trends continue. Texas Instruments Incorporated (TXN - Free Report) is entering a new phase of its investment cycle, with capital expenditures expected to decline after several years of heavy spending on manufacturing expansion. This shift could significantly improve the company’s free cash flow and strengthen its ability to return more capital to shareholders.
Over the past few years, Texas Instruments invested aggressively in new 300-millimeter wafer fabrication plants and assembly and test facilities to expand internal manufacturing capacity. These investments temporarily weighed on free cash flow but positioned the company to support future demand while lowering production costs. In 2025, capital expenditures totaled approximately $4.55 billion.
The spending pace is now easing. In the first quarter of 2026, Texas Instruments’ capital expenditure nearly halved to $676 million from $1.12 billion in the year-ago quarter. Management expects 2026 capital expenditures to be between $2 billion and $3 billion, about a 34% to 56% reduction from the 2025 level. While some investment will continue to support additional assembly and test capacity, the company believes most of its major manufacturing infrastructure is already in place. This should allow a larger share of operating cash flow to convert into free cash flow.
The benefits are already becoming visible. In the first quarter of 2026, Texas Instruments generated free cash flow of $1.4 billion, a robust improvement from a negative $14 million in the year-ago quarter. Trailing 12-month free cash flow also increased to $4.35 billion in the first quarter of 2026 from $1.72 billion a year earlier. Free cash flow margin also improved sharply to 23.6% from 10.7%, supported by stronger revenue growth and lower capital intensity.
Management believes free cash flow per share could exceed $8 in 2026 if current demand trends continue. Combined with improving industrial demand, stronger data center spending and better factory utilization, lower capital expenditures could further strengthen Texas Instruments’ cash generation, giving the company greater flexibility to fund dividends, repurchase shares and invest in future growth. In the trailing 12 months, Texas Instruments returned $6.43 billion to shareholders through share buybacks and dividend payments.
TXN’s Rivals Are Also Balancing CapEx and Cash GenerationTexas Instruments’ main competitors, Analog Devices, Inc. (ADI - Free Report) and NXP Semiconductors N.V. (NXPI - Free Report) , are also balancing their capital expenditures and cash flows.
Analog Devices has taken a disciplined approach to capital spending while maintaining strong cash flow. The company follows a hybrid manufacturing model that combines internal production with outsourced foundries, allowing it to keep capital expenditures relatively low.
This asset-light approach has helped Analog Devices consistently generate more than $3 billion in annual free cash flow while maintaining free cash flow margins above 30% over the past few years. The strong cash generation has enabled the company to steadily increase dividends and repurchase shares without making large manufacturing investments.
NXP Semiconductors also focuses on disciplined capital allocation to maximize cash flow. The company typically keeps annual capital expenditures at about a mid-single-digit percentage of revenue, well below the levels Texas Instruments has invested in recent years. This strategy has helped NXP Semiconductors consistently generate more than $2 billion in annual free cash flow, supporting regular dividends and sizable share repurchases.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 76.1% year to date compared with the Zacks Semiconductor - General industry’s 18.2% growth.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 37.01, significantly higher than the industry’s average of 22.23.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 40.6% and 14.4%, respectively. Estimates for 2026 and 2027 have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Texas Instruments currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments čeká za čtvrtletí zisk na akcii 1,91 USD a tržby 5,22 miliardy USD, což by znamenalo meziroční růst o 35,5 % a 17,4 %. Analytici navíc vidí Earnings ESP na úrovni +2,66 % a čekají překonání odhadů.
Texas Instruments (TXN - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 22. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis chipmaker is expected to post quarterly earnings of $1.91 per share in its upcoming report, which represents a year-over-year change of +35.5%.
Revenues are expected to be $5.22 billion, up 17.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.88% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Texas Instruments?For Texas Instruments, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.66%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Texas Instruments will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Texas Instruments would post earnings of $1.37 per share when it actually produced earnings of $1.68, delivering a surprise of +22.63%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Texas Instruments appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Embedded divize společnosti Texas Instruments v 1. čtvrtletí roku 2026 zvýšila tržby o 12 % na 723 milionů USD a provozní zisk více než ztrojnásobila na 122 milionů USD. Firma těží z rostoucí poptávky po čipech v průmyslu, autech i zdravotnictví.
Key Takeaways TXN's Embedded processing revenues rose 12% to $723 million in Q1'26, while profit more than tripled.Texas Instruments benefits from rising chip use in factories, vehicles, medical devices and networks.TXN's Internal 300-mm wafer production lowers costs and improves supply reliability as demand recovers. Texas Instruments Incorporated’s (TXN - Free Report) embedded processing business has returned to healthy growth, raising hopes that the segment can remain an important driver of the company’s long-term performance. Although the analog business remains the largest contributor, embedded processing is benefiting from improving industrial demand and increasing semiconductor content across connected devices, vehicles and factory automation.
In the first quarter of 2026, embedded processing revenues increased 12% year over year to $723 million. The segment’s operating profit more than tripled to $122 million from $40 million a year earlier, reflecting stronger sales and better factory utilization. The recovery shows that customer inventory adjustments are easing and end-market demand is gradually improving.
Texas Instruments is well-positioned to benefit from long-term growth trends. Its portfolio of microcontrollers and processors is widely used in industrial equipment, automotive systems, medical devices and communications infrastructure. Growing adoption of smart factories, advanced driver-assistance systems and connected industrial equipment is expected to increase demand for embedded chips over the coming years.
The company also benefits from its manufacturing strategy. Greater use of internally produced 300-millimeter wafers helps lower production costs while improving supply reliability. This gives Texas Instruments an advantage in serving customers during periods of rising demand.
However, management remains cautious about the second half of 2026 due to macroeconomic uncertainty and uneven demand across some markets. Automotive demand also remains mixed in certain regions. Even so, improving industrial activity, growing automation investments and expanding applications for embedded processors provide a favorable backdrop.
If these trends continue, Texas Instruments’ embedded business appears well-positioned to extend its double-digit growth run and contribute meaningfully to overall revenue and profit growth. The Zacks Consensus Estimate for TXN’s 2026 embedded processing revenues is currently pegged at $3 billion, indicating 11.4% year-over-year growth.
How Rivals Fare Against TXN in the Embedded Chip MarketMicrochip Technology Incorporated (MCHP - Free Report) and NXP Semiconductors N.V. (NXPI - Free Report) are two leading competitors of Texas Instruments in the embedded processing market.
Microchip Technology offers a broad portfolio of microcontrollers, microprocessors and connectivity solutions used in industrial automation, automotive electronics and aerospace applications. The company is benefiting from broad-based demand improvement across end markets, stronger customer engagement and normalization of inventory levels across its supply and distribution channels. In the last reported financial results for the fourth quarter of fiscal 2026, Microchip Technology’s revenues surged 35% year over year to $1.31 billion.
NXP Semiconductors is another strong rival, with a leading position in automotive processors, secure connectivity and industrial embedded systems. Automotive accounts for more than half of NXPI’s revenue, supported by growing semiconductor content in electric vehicles and advanced driver-assistance systems. NXP Semiconductors is also expanding its edge AI and industrial IoT offerings to capture long-term growth opportunities. However, softer vehicle production in Europe and China has weighed on near-term sales. In the first quarter of 2026, NXP Semiconductors’ revenues increased 12% year over year to $3.18 billion.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 77.8% year to date compared with the Zacks Semiconductor - General industry’s 19.3% growth.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 37.43, significantly higher than the industry’s average of 22.65.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 40.6% and 14.4%, respectively. Estimates for 2026 have remained unchanged over the past 60 days, while estimates for 2027 have been revised upward during the same time frame.
Image Source: Zacks Investment Research
Texas Instruments currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways TXN shares rallied 51.9% in three months, outpacing the semiconductor industry and major peers.Texas Instruments benefits from AI infrastructure demand through analog and embedded chips.TXN generated $4.35B in free cash flow and returned nearly $1.45B in the first quarter of 2026. Texas Instruments Incorporated (TXN - Free Report) shares have rallied 51.9% over the past three months, making the company one of the biggest winners in the semiconductor space. The stock has comfortably outperformed the broader Zacks Semiconductor – General industry’s 23.7% gain.
The rally has also outpaced major peers, including QUALCOMM Incorporated (QCOM - Free Report) , Broadcom Inc. (AVGO - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Over the past three months, shares of QUALCOMM, Broadcom and NVIDIA have risen 43.2%, 17.2% and 11.1%, respectively.
While such a massive rally may prompt some investors to book profits and exit the investment, Texas Instruments' strong fundamentals suggest there could still be room for upside. The company remains one of the clearest beneficiaries of the artificial intelligence (AI) infrastructure boom, and demand trends continue to work heavily in its favor.
AI Is Helping Texas Instruments Even Without AI GPUsUnlike NVIDIA or AMD, Texas Instruments does not build AI accelerators. Instead, it supplies the analog and embedded chips that keep AI infrastructure running.
Its products manage power, convert signals, control motors, regulate cooling systems and enable connectivity across data centers, industrial equipment and automotive applications. These components may receive less attention than AI processors, but they are essential as AI servers become more power-hungry and increasingly complex.
Every new AI data center requires far more power management and sensing components than traditional computing infrastructure. This is creating a meaningful opportunity for Texas Instruments.
Rather than competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout — a trend that could prove more durable over time.
The company's data center business reached an annual revenue run rate of roughly $1.2 billion in 2025, growing more than 50% year over year. In the first quarter of 2026, data center revenues jumped 90% from the prior-year period and increased 25% sequentially. These growth rates highlight the company’s growing importance in AI infrastructure and suggest that this market could remain a major contributor for years.
TXN’s Financial Performance Continues to ImproveTexas Instruments is also executing well financially. First-quarter 2026 revenues increased 18.6% year over year, while non-GAAP earnings per share climbed 31.3%, showing that demand is improving across several end markets.
Management’s outlook for the second quarter suggests that this momentum is far from over. Texas Instruments expects revenues between $5 billion and $5.4 billion, representing year-over-year growth of 12-21%. The projected earnings range of $1.77-$2.05 per share implies growth of 25-45%, reflecting continued strength across key markets, particularly those benefiting from AI-driven investments.
The Zacks Consensus Estimate for 2026 and 2027 also points to continued expansion in both revenue and earnings, reinforcing confidence in the company’s growth trajectory.
Image Source: Zacks Investment Research
TXN Eyes Competitive Lead Through Internal ManufacturingTexas Instruments is also taking a different approach to manufacturing than many semiconductor companies. Instead of relying heavily on external foundries, management plans to manufacture more than 95% of its wafers internally by 2030.
This strategy requires significant investment today but offers several long-term advantages. Greater manufacturing control can improve supply-chain reliability, reduce production costs over time and protect margins during industry shortages.
Government incentives further strengthen this strategy. Texas Instruments expects up to $1.6 billion in CHIPS Act funding, with total lifetime benefits estimated between $7.5 billion and $9.5 billion. These incentives should lower expansion costs while supporting future profitability.
TXN’s Strong Cash Generation Supports Shareholder ReturnsAnother reason investors continue to favor Texas Instruments is its ability to generate cash. Over the last 12 months, the company produced $7.8 billion in operating cash flow and $4.35 billion in free cash flow. It also ended the first quarter with $5.1 billion in cash and short-term investments. This financial strength allows management to invest in new manufacturing capacity while continuing to reward shareholders.
During the first quarter alone, Texas Instruments returned nearly $1.45 billion through dividends and share repurchases. Over the past year, total shareholder returns approached $6 billion. Few semiconductor companies combine growth investments with such consistent capital returns.
Should Investors Be Worried About TXN’s Premium Valuation?From a valuation standpoint, Texas Instruments is not cheap. The company currently carries a Zacks Value Score of D, indicating that the stock trades at a premium relative to traditional valuation metrics.
TXN currently trades at a forward 12-month P/E ratio of 36.31, well above the industry average of 23.32. Compared with other semiconductor leaders, Texas Instruments also trades at a higher earnings multiple than Broadcom, NVIDIA and QUALCOMM. At present, Broadcom, NVIDIA and QUALCOMM are trading at P/E multiples of 22.16, 19.19 and 16.74, respectively.
Texas Instruments Forward 12-Month P/E Ratio
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However, premium valuations are often justified when companies combine durable growth, strong profitability and consistent cash generation. Texas Instruments checks many of these boxes. The company continues to benefit from expanding AI-related demand, generates substantial free cash flow, maintains a strong balance sheet and consistently returns cash to shareholders through dividends and buybacks.
Final Thoughts: Buy More TXN SharesTexas Instruments' recent rally appears to be supported by improving fundamentals rather than market enthusiasm alone. The company is benefiting from rising AI infrastructure spending, rapidly expanding data center demand and a manufacturing strategy that should strengthen its competitive position over time.
Although the stock trades at a premium valuation, that premium appears justified, given its consistent earnings growth, robust cash flows and shareholder-friendly approach. With AI infrastructure spending still in the early stages of a multi-year expansion cycle, Texas Instruments looks well-positioned to deliver steady growth for years to come.
Currently, Texas Instruments carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Texas Instruments v 1. čtvrtletí zvýšil tržby o 19 % na 4,83 mld. USD díky silné poptávce v průmyslu a datových centrech. Vyšší zásoby mu pomáhají rychleji dodávat a podporují růst tržeb i cash flow.
Key Takeaways TXN's inventory strategy is helping meet strong demand across industrial and data center markets.Texas Instruments reported Q1'26 revenues of $4.83B, up 19%, supported by ready inventory.Texas Instruments expects inventory to decline if demand stays strong, boosting revenues and cash flow. Texas Instruments Incorporated’s (TXN - Free Report) decision to build higher inventory during the semiconductor downturn is beginning to deliver results as demand improves across key end markets. Instead of aggressively cutting production during the slowdown, the company continued manufacturing chips and built inventory to ensure faster deliveries when customers returned. This strategy now appears to be supporting both revenue growth and customer relationships.
In the first quarter of 2026, Texas Instruments reported revenues of $4.83 billion, up 19% year over year, driven by strong demand in industrial and data center markets. The company noted that inventory played a key role in meeting customer requirements during the demand recovery. TXN maintained 209 days of inventory at the end of the quarter, comfortably within its long-term target range of 150 to 250 days. At the end of 2025, it had 222 days of inventory.
Management believes inventory is a competitive advantage rather than a financial burden. Having finished products readily available allows Texas Instruments to keep lead times short and stable, helping customers avoid production disruptions. This capability has become even more valuable as some outsourced assembly and testing providers face capacity constraints.
Texas Instruments also expects inventory levels to decline gradually if demand remains strong throughout 2026. As products move out of warehouses and factory utilization improves, inventory should convert into higher revenues and stronger cash flow. Meanwhile, the company continues to adjust wafer starts based on real-time demand, allowing it to balance supply with market conditions.
Although macroeconomic uncertainty remains, the company’s disciplined inventory strategy has positioned it well for the current demand environment. Combined with expanding manufacturing capacity, and rising industrial and data center demand, this approach could support additional market share gains and sustained long-term growth. The Zacks Consensus Estimate for 2026 revenue is pegged at $20.76 billion, indicating a year-over-year increase of 17.4%.
What Inventory Strategy Do TXN’s Rivals Follow?Analog Devices, Inc. (ADI - Free Report) is a major competitor of Texas Instruments in the analog and mixed-signal semiconductor markets. The company has been carefully managing inventory as industrial and automotive markets recover.
Analog Devices ended the second quarter of fiscal 2026 with inventory at 168 days and channel inventory stable at six to seven weeks. Management considers this level healthy and manageable. Analog Devices is intentionally building strategic inventory to support future demand, particularly as data center and automated test equipment markets continue to experience strong growth.
NXP Semiconductors N.V. (NXPI - Free Report) is another major rival that competes with Texas Instruments in the analog and embedded semiconductor markets. NXP Semiconductors has also been focusing on balancing inventory with customer demand.
NXP Semiconductors ended the first quarter of 2026 with 11 weeks of channel inventory, aligning with the company’s long-term target and reflecting a distribution pipeline positioned to support near-term demand.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have soared 64.6% year to date compared with the Zacks Semiconductor - General industry’s 15.2% gain.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 34.77, significantly higher than the industry’s average of 22.36.
Texas Instruments Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 40.6% and 14.4%, respectively. Estimates for 2026 and 2027 have been revised upward in the past 60 days.
Image Source: Zacks Investment Research
Texas Instruments currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investice do AI ženou poptávku po čipech a Micron už vyprodal veškerou HBM kapacitu na rok 2026, přičemž velká část produkce na rok 2027 je také zadaná.
Key Takeaways AI infrastructure spending is driving demand for advanced chips, memory and manufacturing services.Micron has sold out 2026 HBM supply, with much of 2027 output committed under customer deals.FormFactor, Texas Instruments and Taiwan Semiconductor benefit from rising AI chip complexity. Artificial intelligence (AI) has become one of the biggest investment themes in the technology sector, and the rapid rise in AI infrastructure spending is creating major opportunities for semiconductor companies. Large cloud providers and hyperscalers are investing heavily to expand their AI capabilities, which is driving demand for advanced chips, memory solutions and semiconductor manufacturing services.
Amazon, Microsoft, Alphabet and Meta Platforms are expected to spend around $700 billion in capital expenditures in 2026. The majority of that spending is expected to go toward AI infrastructure, including data centers, networking equipment, advanced processors and memory solutions. This wave of investment is creating a strong demand environment for companies that supply the semiconductor industry.
According to Gartner, worldwide AI-related spending is expected to increase 47% and reach $2.59 trillion in 2026. The expansion is not limited to cloud companies. Enterprises across industries are deploying AI applications, which require powerful processors, high-bandwidth memory (HBM), advanced packaging and sophisticated semiconductor equipment.
As AI workloads become larger and more complex, chipmakers are becoming some of the biggest beneficiaries of this spending cycle. Companies that provide memory products, chip manufacturing services, testing solutions and analog semiconductors are seeing growing opportunities. Investors looking to benefit from the AI capex boom should consider semiconductor companies that have strong technology positions and long-term growth drivers.
Micron Technology, Inc. (MU - Free Report) , FormFactor, Inc. (FORM - Free Report) , Texas Instruments Incorporated (TXN - Free Report) and Taiwan Semiconductor Manufacturing Company (TSM - Free Report) are four such semiconductor stocks that appear well-positioned to benefit from the ongoing AI capex boom. These stocks have a favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy), offering solid investment opportunities.
Micron Technology: AI Memory Demand Drives GrowthMicron Technology is one of the leading suppliers of DRAM and NAND memory and has emerged as a key player in the HBM market. HBM is critical for AI accelerators because it enables faster data processing and improves performance in large language models and generative AI applications.
The strength of this demand is evident in Micron Technology’s order book. The company has already sold out its HBM supply for the calendar year 2026, while a significant portion of 2027 production is already committed through long-term customer agreements.
This favorable supply-demand environment is supporting higher pricing and stronger margins. Beyond HBM, demand for conventional DRAM used in AI servers continues to rise. As hyperscalers expand AI data centers and enterprises deploy advanced AI workloads, Micron Technology remains one of the most direct beneficiaries of the growing AI memory market.
In the third quarter of fiscal 2026, MU’s revenues surged 346% year over year, while non-GAAP earnings per share (EPS) jumped 1,200%. The Zacks Consensus Estimate for fiscal 2026 revenues and EPS suggests a year-over-year increase of approximately 225% and 675%, respectively. The consensus mark for fiscal 2026 earnings has been revised upward over the past seven days.
Currently, Micron Technology sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.
FormFactor: Benefiting From Advanced Chip Testing DemandFormFactor is an important supplier of semiconductor testing and measurement solutions. Its products play a critical role in the development and production of advanced semiconductors. AI processors and memory products have become increasingly complex, requiring extensive testing to ensure performance and reliability. FormFactor’s probe cards and engineering systems help semiconductor companies validate advanced chips before commercial production.
The growing adoption of HBM and advanced packaging technologies is creating additional opportunities for the company. AI chips often combine multiple components within a single package, increasing testing requirements throughout the manufacturing process.
FormFactor serves many leading semiconductor and memory manufacturers, allowing it to benefit directly from rising AI investments. As advanced chip production expands, the demand for testing solutions is expected to remain strong. With AI applications requiring more sophisticated semiconductors, FormFactor appears well-positioned to benefit from the increasing complexity of chip manufacturing.
In the first quarter of 2026, FormFactor’s revenues and adjusted EPS increased 32% and 143%, respectively, on a year-over-year basis. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year jump of 22% and 85%, respectively. The consensus mark for 2026 earnings has been revised upward over the past 60 days.
FormFactor sports a Zacks Rank #1 and has a Growth Score of B at present.
Texas Instruments: Analog Leadership to Aid Long-Term GrowthTexas Instruments is seeing rising momentum in the data center market, which has become an important growth driver for the company. It does not compete directly in high-end AI graphics processors. Instead, it supplies analog and embedded chips that are essential for data center infrastructure. These chips help manage power delivery, battery backup systems, cooling equipment, motor controls, signal conversion and server connectivity. As modern data centers become larger and more power-intensive, the need for efficient power management solutions increases.
In 2025, Texas Instruments’ data center business reached an annual run rate of about $1.2 billion, growing more than 50% year over year. In the first quarter of 2026, revenues from the data center end market surged 90% year over year and 25% sequentially. As cloud and AI workloads continue to rise, Texas Instruments’ strong portfolio and manufacturing scale position it well to benefit from sustained demand for efficient, high-performance power solutions in data center infrastructure.
One of TXN’s biggest strengths is its manufacturing advantage. The company continues expanding its 300-millimeter wafer capacity, which supports lower production costs and stronger margins over time. In the first quarter of 2026, non-GAAP gross margin expanded 120 basis points (bps) year over year to 58%, while non-GAAP operating margin improved 490 bps to 37.5%.
In the first quarter, Texas Instruments’ revenues and non-GAAP EPS increased approximately 19% and 31%, respectively, on a year-over-year basis. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year rise of 17% and 41%, respectively. The consensus mark for 2026 earnings has been revised upward over the past 60 days.
Currently, Texas Instruments carries a Zacks Rank #2 and has a Growth Score of B.
Taiwan Semiconductor: The Backbone of AI Chip ManufacturingTaiwan Semiconductor, also known as TSMC, stands at the center of the AI revolution. The company is the world’s largest contract chip manufacturer and produces advanced chips for many leading technology companies.
AI chip designers depend heavily on TSMC’s advanced manufacturing technologies. The company’s leading-edge 3-nanometer and 5-nanometer processes are widely used for high-performance computing and AI applications. Taiwan Semiconductor’s advanced packaging technologies have also become increasingly important for AI processors.
High-performance computing has become one of TSMC’s largest revenue drivers. Strong demand from AI customers continues to support capacity utilization and revenue growth. Major technology companies, including NVIDIA, Broadcom, Advanced Micro Devices and QUALCOMM, rely on Taiwan Semiconductor to manufacture their most advanced chips.
In the first quarter of 2026, Taiwan Semiconductor’s revenues in U.S. dollars surged approximately 41% year over year, while EPS jumped 65%. The Zacks Consensus Estimate for 2026 revenues and EPS suggests a year-over-year increase of 32% and 44%, respectively. The consensus mark for 2026 earnings has been revised upward over the past seven days.
Taiwan Semiconductor carries a Zacks Rank #2 and has a Growth Score of B at present.
