In the latest trading session, Texas Instruments (TXN - Free Report) closed at $258.44, marking a +1.82% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.38%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.29%.
The chipmaker's shares have seen a decrease of 8.83% over the last month, not keeping up with the Computer and Technology sector's gain of 2.81% and the S&P 500's gain of 2.08%.
Investors will be eagerly watching for the performance of Texas Instruments in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.39, reflecting a 61.49% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $5.91 billion, up 24.69% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $8.45 per share and a revenue of $21.7 billion, demonstrating changes of +55.05% and +22.73%, respectively, from the preceding year.
Any recent changes to analyst estimates for Texas Instruments should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.82% upward. Texas Instruments is currently a Zacks Rank #2 (Buy).
Digging into valuation, Texas Instruments currently has a Forward P/E ratio of 30.04. This represents a discount compared to its industry average Forward P/E of 35.05.
We can additionally observe that TXN currently boasts a PEG ratio of 1.42. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - General industry had an average PEG ratio of 1.77 as trading concluded yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 25, which puts it in the top 11% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Texas Instruments ve 2. čtvrtletí zvýšil tržby o 23 % na 5,46 miliardy USD a non-GAAP EPS o 52 % na 2,14 USD. Tržby z datacenter se meziročně zdvojnásobily.
Key Takeaways Texas Instruments' Q2'26 revenues rose 23%, while non-GAAP EPS jumped 52% year over year.TXN's data center revenues doubled year over year in Q2'26 and increased 20% sequentially.Texas Instruments plans to produce more than 95% of its wafers internally by 2030. Texas Instruments Incorporated (TXN - Free Report) has emerged as one of the better-performing semiconductor stocks this year, but that outperformance comes with a catch — investors are now paying a premium for the company's growth prospects.
Texas Instruments currently trades at around 26.97 times forward 12-month earnings, well above the 20.22 times for the broader Zacks Computer and Technology sector. The stock also carries a Value Score of D, signaling that valuation is clearly stretched.
Texas Instruments Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
TXN looks expensive compared with several semiconductor companies, including Amtech Systems, Inc. (ASYS - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Analog Devices, Inc. (ADI - Free Report) . Amtech Systems trades at 12.25 times forward 12-month earnings, while NVIDIA and Analog Devices trade at 17.44 times and 22.49 times, respectively.
The premium is harder to ignore after TXN shares have gained 46.8% year to date compared with a 15.5% rise for the sector. Semiconductor peers, Amtech Systems, NVIDIA and Analog Devices, have gained 16.3%, 20.2% and 30.9%, respectively.
Given the sharp rally, investors may question whether the stock has already priced in much of its future growth.
Yet there is a strong argument for staying bullish. Texas Instruments' earnings are accelerating, exposure to AI infrastructure is expanding, and manufacturing investments could strengthen its competitive position. These factors suggest that the company's valuation deserves a closer look rather than being dismissed simply because it is above the sector average.
Strong Financial Results Support TXN’s Premium ValuationTexas Instruments' recent financial performance provides an important reason for investors to accept a higher valuation. Its second-quarter 2026 revenues rose 23% year over year to $5.46 billion, while non-GAAP earnings per share (EPS) jumped 52% to $2.14. The stronger earnings growth is particularly encouraging because it shows that improving demand is translating into meaningful bottom-line gains.
Texas Instruments expects this momentum to continue. Third-quarter revenue guidance of $5.65-$6.15 billion represents roughly 25% year-over-year growth at the midpoint. The midpoint of the EPS guidance, at $2.40, implies nearly 62% year-over-year growth. The guidance reflects healthy demand across several markets, particularly those tied to AI infrastructure.
Wall Street shares the same optimism. The Zacks Consensus Estimate calls for continued revenue and earnings growth in both 2026 and 2027, reinforcing confidence that the company's growth story is far from over.
TXN Sales and EPS Growth Rate Estimates
Image Source: Zacks Investment Research
AI Infrastructure Gives TXN an Attractive Growth OpportunityTexas Instruments is not competing with NVIDIA or AMD in AI accelerators, but it is quietly becoming an important beneficiary of the AI boom. The company supplies analog and embedded chips that perform critical functions inside AI infrastructure.
Its analog and embedded chips manage power, process signals, support connectivity and control equipment used throughout data centers and other industrial systems. As AI servers become more power-hungry, the amount of supporting semiconductor content required also increases.
Instead of competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout. This positions Texas Instruments to capture AI spending regardless of which GPU (graphics processing unit) maker ultimately dominates the data center market.
The numbers already reflect this trend. Texas Instruments' data center business reached an annual revenue run rate of approximately $1.2 billion in 2025, growing more than 50% year over year. During the second quarter of 2026, data center revenues doubled from the prior-year quarter and increased 20% sequentially.
Such strong growth suggests AI infrastructure could become an increasingly important revenue driver over the coming years. If AI data center investment remains strong, TXN's exposure could expand without requiring the company to compete directly in the highly competitive accelerator market.
Manufacturing Investments Could Strengthen TXN’s MoatTexas Instruments is also investing heavily to bring more manufacturing in-house. Unlike many semiconductor companies that depend heavily on third-party foundries, TXN plans to produce more than 95% of its wafers internally by 2030.
While this strategy requires substantial capital spending, it could provide greater control over supply and improve cost efficiency. That could become an important competitive advantage as semiconductor demand grows.
Government support should also help reduce the financial burden. Texas Instruments expects to receive up to $1.6 billion in direct CHIPS Act grant and another $6-$8 billion from the U.S. Treasury Department's Investment Tax Credit. Including both, total lifetime benefits are estimated between $7.5 billion and $9.5 billion. These incentives should reduce expansion costs and boost profitability over the long run.
TXN’s Strong Cash Flow Adds Support to the Investment CaseTexas Instruments' cash generation further strengthens its ability to invest while returning capital to shareholders. Over the past 12 months, the company generated $8.67 billion in operating cash flow and $6.53 billion in free cash flow. It ended the second quarter with $7 billion in cash and short-term investments.
The company also continues to reward investors. During the first half of 2026, TXN returned nearly $1.45 billion through dividends and share repurchases. Over the past year, total shareholder returns approached $6 billion.
The strong cash position allows Texas Instruments to invest aggressively in manufacturing expansion while continuing to reward shareholders.
Final Thoughts: Is TXN’s Premium Valuation Justified?Premium valuations are often justified when a company consistently delivers earnings growth, generates strong cash flow and maintains durable competitive advantages.
Texas Instruments fits that profile. The company continues to benefit from expanding AI infrastructure spending, delivers consistent earnings growth, generates substantial free cash flow, maintains a healthy balance sheet and has a long track record of rewarding shareholders through dividends and share buybacks. Those strengths make its premium valuation easier to justify.
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 ve 2. čtvrtletí zvýšila tržby o 23 % na 5,5 miliardy USD a čistý zisk činil téměř 2 miliardy USD. Qualcomm se snaží snížit závislost na smartphonech a do roku 2029 očekává 40 miliard USD z tržeb mimo segment handsetů.
The best dividend stocks usually share two traits: durable business models and plenty of free cash flow. When you find those qualities in tech companies riding the data center boom, you can get both income today and growth potential over time.
Texas Instruments (TXN +1.09%) and Qualcomm (QCOM +1.50%) fit that profile. Each has a real competitive edge in semiconductors, and each should be able to support and grow its dividend for years to come.
Image source: Getty Images.
Texas Instruments Texas Instruments has been around since 1930 and has built a massive scale in analog chips and embedded processors. Those components handle power management and signal conversion in everything from factories and cars to consumer electronics and data centers. High margins and strong free cash flow have helped TI raise its dividend for 22 consecutive years.
Analog chips account for most of TI's revenue, and the market for these chips is less competitive than markets like GPUs. Many of TI's parts remain in production for years, strengthening customer relationships and reducing the need for constant innovation.
That advantage shows up in profitability. In the second quarter, revenue rose 23% year over year to $5.5 billion, driven by improving demand in industrial, data center, and automotive markets. Net income was nearly $2 billion, highlighting the high margins that support growing dividend payments.
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The company has raised the dividend at a compound annual rate of 8% over the last five years. At the current quarterly payout of $1.42, the stock offers a forward yield of roughly 2.2%. If the recovery in its end markets continues, that yield looks especially attractive going into September.
TI's moat is also built on a wide product portfolio, long product lifecycles, and in-house manufacturing. Together, those strengths are hard for competitors to replicate.
The biggest risk is the usual cyclicality in semiconductors, especially when the economy slows. Over the past five years, softness in autos and consumer markets has limited growth, with revenue rising about 4% annually.
Even so, TI's scale has allowed it to keep investing while still returning cash to shareholders. Over the last year, the company generated $5.5 billion in free cash flow on $19.5 billion in revenue, and it continues to follow its policy of returning virtually all free cash flow to investors through dividends.
Qualcomm Qualcomm is a leading supplier of wireless chips and connectivity solutions. Its Snapdragon processors power many Android smartphones, and the company's high profitability supports a dividend yield of about 2.2%.
What makes Qualcomm interesting today is that it's working to reduce its reliance on handsets by expanding into data centers, automotive, and other AI-driven markets. That shift, combined with the stock's recent pullback, creates a potentially compelling entry point.
Handsets still generate most of the company's revenue. The segment posted a 20% year-over-year decline in revenue last quarter, reflecting a weak smartphone market and lost business from Apple's upcoming iPhone. Much of that concern appears priced in, with shares down 36% from a recent high.
The longer-term story is diversification. Qualcomm is using its expertise in power-efficient computing to serve industrial devices, robotics, and data centers, where it could see accelerating growth. Management expects non-handset revenue to represent more than half of its chip business by fiscal 2029.
Specifically, management expects non-handset revenue to reach $40 billion by 2029, including $15 billion from data centers. The company is also gaining traction in the automotive sector, recently signing a deal with BMW to supply chips for next-generation driver-assistance and digital cockpit systems.
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Qualcomm's ability to pivot is backed by scale and cash generation. Even with soft handset revenues, it still produced $10.4 billion in free cash flow over the last year on $44 billion of revenue. That's a healthy free cash flow margin of about 24%.
What's more, the company paid out only 36% of free cash flow as dividends over the last four quarters. The dividend has grown at a 6.5% annualized rate over the past five years, with the current quarterly payment at $0.92 per share. Its relatively low payout leaves room for future dividend increases while Qualcomm funds its expansion into new markets.
With a 2.2% forward yield and shares still off their highs, Qualcomm looks like an appealing buy on the dip.
Emerald Investment Advisers LLC ve 2. čtvrtletí koupila nový podíl v Texas Instruments: 12 166 akcií za zhruba 3,626 mil. USD. Texas Instruments zároveň ve 2. čtvrtletí zvýšila tržby o 22,8 % na 5,46 mld. USD.
Emerald Investment Advisers LLC purchased a new stake in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund purchased 12,166 shares of the semiconductor company’s stock, valued at approximately $3,626,000.
A number of other large investors have also recently bought and sold shares of TXN. HBW Advisory Services LLC boosted its stake in shares of Texas Instruments by 2.2% in the 1st quarter. HBW Advisory Services LLC now owns 1,730 shares of the semiconductor company’s stock valued at $336,000 after purchasing an additional 37 shares in the last quarter. Montz Harcus Wealth Management LLC increased its position in shares of Texas Instruments by 2.9% during the 1st quarter. Montz Harcus Wealth Management LLC now owns 1,338 shares of the semiconductor company’s stock worth $260,000 after purchasing an additional 38 shares in the last quarter. Livforsakringsbolaget Skandia Omsesidigt increased its position in shares of Texas Instruments by 0.6% during the 1st quarter. Livforsakringsbolaget Skandia Omsesidigt now owns 5,960 shares of the semiconductor company’s stock worth $1,157,000 after purchasing an additional 38 shares in the last quarter. Absher Wealth Management LLC lifted its holdings in Texas Instruments by 1.0% during the 1st quarter. Absher Wealth Management LLC now owns 4,223 shares of the semiconductor company’s stock valued at $820,000 after purchasing an additional 42 shares during the last quarter. Finally, Severin Investments LLC lifted its holdings in Texas Instruments by 3.3% during the 1st quarter. Severin Investments LLC now owns 1,349 shares of the semiconductor company’s stock valued at $262,000 after purchasing an additional 43 shares during the last quarter. 84.99% of the stock is currently owned by institutional investors.
Texas Instruments News Roundup Here are the key news stories impacting Texas Instruments this week:
Positive Sentiment: Operational recovery is accelerating. Texas Instruments’ second-quarter results showed revenue growth of roughly 23%, operating profit up 48%, and net income up 53%. Free cash flow also improved 56% as capital spending nearly halved year over year, suggesting the company’s heavy investment cycle may be easing. Texas Instruments: The $6.5 Billion Cash-Flow Machine Is Finally Awake Positive Sentiment: AI and data-center exposure support the long-term outlook. Analysts and fund commentary characterize TXN as a “picks-and-shovels” beneficiary of AI infrastructure, electric vehicles, industrial automation, and factory equipment because its analog chips help power and control these systems. Texas Instruments Is a Worthy AI Picks-and-Shovels Play I Keep Buying Positive Sentiment: TXN retains broad-based momentum. In comparisons with Analog Devices, coverage points to Texas Instruments’ improving manufacturing utilization and strength across multiple end markets, potentially giving it an edge despite ADI’s stronger industrial and automotive trends. ADI vs. TXN: Which Analog Processing Chip Stock Has an Edge Right Now? Neutral Sentiment: Options-market volatility has risen. Surging implied volatility indicates increased uncertainty and the potential for larger price swings, but it does not establish a clear directional signal. Implied Volatility Surging for Texas Instruments Stock Options Negative Sentiment: Post-earnings performance remains a concern. TXN has decreased 6.8% since its latest quarterly report, with investors apparently looking beyond the earnings beat and focusing on forward estimates, elevated expectations, and whether the recovery can continue. Why Is Texas Instruments Down 6.8% Since Last Earnings Report? Texas Instruments Stock Down 0.5% Shares of NASDAQ TXN opened at $264.36 on Friday. Texas Instruments Incorporated has a 12-month low of $152.73 and a 12-month high of $334.03. The firm’s 50-day simple moving average is $290.51 and its 200 day simple moving average is $258.75. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. The company has a market cap of $241.43 billion, a price-to-earnings ratio of 40.24, a price-to-earnings-growth ratio of 1.04 and a beta of 1.33. Texas Instruments (NASDAQ:TXN – Get Free Report) last posted its quarterly earnings data 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 net margin of 31.11% and a return on equity of 35.77%. The firm had revenue of $5.46 billion during the quarter, compared to analysts’ expectations of $5.26 billion. During the same quarter last year, the company posted $1.41 EPS. The company’s quarterly revenue was up 22.8% compared to the same quarter last year. Texas Instruments has set its Q3 2026 guidance at 2.230-2.570 EPS. On average, research analysts expect that Texas Instruments Incorporated will post 8.42 earnings per share for the current fiscal year.
Texas Instruments Announces Dividend The business also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Stockholders of record on Friday, July 31st were paid a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a dividend yield of 2.1%. The ex-dividend date of this dividend was Friday, July 31st. Texas Instruments’s dividend payout ratio is 86.45%.
Analysts Set New Price Targets Several analysts have weighed in on the stock. Jefferies Financial Group raised shares of Texas Instruments from a “hold” rating to a “buy” rating in a research note on Friday, May 22nd. TD Cowen cut their target price on shares of Texas Instruments from $360.00 to $340.00 and set a “buy” rating for the company in a research note on Thursday, July 23rd. Sanford C. Bernstein boosted their target price on Texas Instruments from $250.00 to $290.00 and gave the stock a “market perform” rating in a report on Thursday, July 23rd. Cantor Fitzgerald reissued a “neutral” rating and issued a $340.00 target price on shares of Texas Instruments in a report on Monday, August 17th. Finally, Susquehanna increased their price target on Texas Instruments from $300.00 to $340.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $312.12.
Get Our Latest Report on Texas Instruments
Texas Instruments Company 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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Avanda Investment Management Pte. Ltd. ve 2. čtvrtletí otevřela novou pozici v Texas Instruments: 7 000 akcií za zhruba 2,086 milionu USD. Podíl nyní tvoří asi 0,7 % portfolia fondu.
Avanda Investment Management Pte. Ltd. purchased a new position in Texas Instruments Incorporated (NASDAQ:TXN – Free Report) during the second quarter, according to its most recent Form 13F filing with the SEC. The fund purchased 7,000 shares of the semiconductor company’s stock, valued at approximately $2,086,000. Texas Instruments makes up about 0.7% of Avanda Investment Management Pte. Ltd.’s investment portfolio, making the stock its 14th biggest holding.
Several other hedge funds and other institutional investors also recently made changes to their positions in the stock. High Point Wealth Management LLC bought a new position in Texas Instruments in the 4th quarter worth about $25,000. Strategic Wealth Investment Group LLC purchased a new stake in shares of Texas Instruments during the second quarter valued at approximately $25,000. Advocate Investing Services LLC bought a new stake in shares of Texas Instruments during the fourth quarter valued at approximately $25,000. Ares Financial Consulting LLC purchased a new position in Texas Instruments in the 4th quarter worth approximately $26,000. Finally, Cornerstone Financial Management LLC purchased a new position in Texas Instruments in the 4th quarter worth approximately $27,000. Hedge funds and other institutional investors own 84.99% of the company’s stock.
Texas Instruments Price Performance Shares of NASDAQ TXN opened at $264.36 on Friday. The firm has a market cap of $241.43 billion, a PE ratio of 40.24, a PEG ratio of 1.04 and a beta of 1.33. Texas Instruments Incorporated has a one year low of $152.73 and a one year high of $334.03. The firm has a fifty day moving average of $290.51 and a 200 day moving average of $258.75. The company has a debt-to-equity ratio of 0.72, a quick ratio of 3.44 and a current ratio of 4.86.
Texas Instruments (NASDAQ:TXN – Get Free Report) last issued its earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.The business had revenue of $5.46 billion during the quarter, compared to the consensus estimate of $5.26 billion. During the same period last year, the company earned $1.41 EPS. The company’s revenue for the quarter 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, research analysts predict that Texas Instruments Incorporated will post 8.42 EPS for the current fiscal year. Texas Instruments Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, August 11th. Investors of record on Friday, July 31st were issued a dividend of $1.42 per share. This represents a $5.68 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend was Friday, July 31st. Texas Instruments’s dividend payout ratio is currently 86.45%.
More Texas Instruments News Here are the key news stories impacting Texas Instruments this week:
Positive Sentiment: Operational recovery is accelerating. Texas Instruments’ second-quarter results showed revenue growth of roughly 23%, operating profit up 48%, and net income up 53%. Free cash flow also improved 56% as capital spending nearly halved year over year, suggesting the company’s heavy investment cycle may be easing. Texas Instruments: The $6.5 Billion Cash-Flow Machine Is Finally Awake Positive Sentiment: AI and data-center exposure support the long-term outlook. Analysts and fund commentary characterize TXN as a “picks-and-shovels” beneficiary of AI infrastructure, electric vehicles, industrial automation, and factory equipment because its analog chips help power and control these systems. Texas Instruments Is a Worthy AI Picks-and-Shovels Play I Keep Buying Positive Sentiment: TXN retains broad-based momentum. In comparisons with Analog Devices, coverage points to Texas Instruments’ improving manufacturing utilization and strength across multiple end markets, potentially giving it an edge despite ADI’s stronger industrial and automotive trends. ADI vs. TXN: Which Analog Processing Chip Stock Has an Edge Right Now? Neutral Sentiment: Options-market volatility has risen. Surging implied volatility indicates increased uncertainty and the potential for larger price swings, but it does not establish a clear directional signal. Implied Volatility Surging for Texas Instruments Stock Options Negative Sentiment: Post-earnings performance remains a concern. TXN has decreased 6.8% since its latest quarterly report, with investors apparently looking beyond the earnings beat and focusing on forward estimates, elevated expectations, and whether the recovery can continue. Why Is Texas Instruments Down 6.8% Since Last Earnings Report? Wall Street Analysts Forecast Growth Several research analysts have weighed in on TXN shares. Weiss Ratings upgraded Texas Instruments from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Benchmark upped their price objective on Texas Instruments from $315.00 to $360.00 and gave the stock a “buy” rating in a report on Thursday, July 23rd. Susquehanna boosted their price target on shares of Texas Instruments from $300.00 to $340.00 and gave the stock a “positive” rating in a research report on Tuesday, July 21st. Sanford C. Bernstein boosted their price target on shares of Texas Instruments from $250.00 to $290.00 and gave the stock a “market perform” rating in a research report on Thursday, July 23rd. Finally, Arete Research set a $405.00 price objective on shares of Texas Instruments and gave the company a “buy” rating in a research report on Wednesday, July 29th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $312.12.
View Our Latest 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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It has been about a month since the last earnings report for Texas Instruments (TXN - Free Report) . Shares have lost about 6.8% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Texas Instruments due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Texas Instruments Q2 Earnings Beat Estimates, Revenues Rise Y/YTexas Instruments reported second-quarter 2026 earnings of $2.14 per share, which increased 52% year over year. The bottom line beat the Zacks Consensus Estimate by 12%.
TXN posted revenues of $5.46 billion, which rose 23% from the year-ago quarter. The top line surpassed the consensus mark by 4.6%, driven by strength in industrial, data center and automotive markets.
TXN’s Segment Mix Highlights Broad-Based GrowthTexas Instruments’ second-quarter results reflected strength across its two core operating segments.
Analog revenues came in at $4.37 billion (79.9% of total revenues), which grew 26% from the year-ago quarter, underscoring improving demand conditions across key end markets. The figure came above our model estimate of $4.08 billion.
Embedded Processing revenues totaled $788 million (14.4% of total revenues), reflecting 16.1% year-over-year growth. The figure missed our model estimate of $799.1 million.
The Other segment generated $310 million of revenues (5.7% of total revenues), which declined 2.2% from the prior-year period. The figure missed our model estimate of $328.5 million.
Texas Instruments Expands Operating LeverageTexas Instruments’ gross profit increased 30% year over year to $3.35 billion. Gross margin of 61.4% expanded 350 basis points (bps) year over year.
Selling, general and administrative (SG&A) expenses increased 1% year over year to $490 million. As a percentage of revenues, SG&A expenses contracted 190 bps year over year to 9%.
Research and development expenses increased 1.5% year over year to $535 million. As a percentage of revenues, it decreased 210 bps year over year to 9.8%.
Operating profit rose 47.8% year over year to $2.31 billion. The operating margin was 42.3%, which expanded 710 bps from the prior-year quarter’s number.
TXN Cash Generation Supports Shareholder ReturnsAs of June 30, 2026, the cash and short-term investment balance was $7 billion, up from $5.1 billion as of March 31, 2026.
At the end of the reported quarter, TXN’s long-term debt was $12.903 billion compared with $12.901 billion in the previous quarter.
Texas Instruments generated an operating cash flow of approximately $2.7 billion in the second quarter. During the second quarter, it repurchased stocks worth $27 million and paid $1.295 billion in dividends.
Texas Instruments Initiates Guidance for Q3 2026Management’s outlook calls for third-quarter 2026 revenues in the range of $5.65-$6.15 billion.
The company expects an effective tax rate of about 13% in the third quarter. Texas Instruments expects earnings per share between $2.23 and $2.57.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 14.26% due to these changes.
VGM ScoresAt this time, Texas Instruments has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Texas Instruments has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
B. Metzler seel. Sohn & Co. AG acquired a new position in shares of Texas Instruments Incorporated (NASDAQ:TXN – Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 220,702 shares of the semiconductor company’s stock, valued at approximately $65,785,000.
A number of other institutional investors have also recently bought and sold shares of TXN. High Point Wealth Management LLC acquired a new stake in Texas Instruments in the fourth quarter worth $25,000. Strategic Wealth Investment Group LLC acquired a new position in shares of Texas Instruments in the 2nd quarter valued at $25,000. Advocate Investing Services LLC bought a new stake in shares of Texas Instruments in the 4th quarter valued at $25,000. Ares Financial Consulting LLC bought a new stake in shares of Texas Instruments in the 4th quarter valued at $26,000. Finally, Cornerstone Financial Management LLC acquired a new stake in Texas Instruments during the 4th quarter worth $27,000. Institutional investors and hedge funds own 84.99% of the company’s stock.
Wall Street Analysts Forecast Growth A number of research firms have issued reports on TXN. Wolfe Research reissued an “outperform” rating and issued a $315.00 target price on shares of Texas Instruments in a research note on Thursday, April 23rd. TD Cowen cut their price objective on Texas Instruments from $360.00 to $340.00 and set a “buy” rating on the stock in a report on Thursday, July 23rd. Susquehanna boosted their price objective on Texas Instruments from $300.00 to $340.00 and gave the company a “positive” rating in a research report on Tuesday, July 21st. Weiss Ratings raised Texas Instruments from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, July 28th. Finally, The Goldman Sachs Group raised their target price on shares of Texas Instruments from $200.00 to $225.00 and gave the stock a “sell” rating in a report on Thursday, July 23rd. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the company’s stock. According to MarketBeat, Texas Instruments currently has a consensus rating of “Moderate Buy” and a consensus target price of $312.12.
Get Our Latest Analysis on Texas Instruments Texas Instruments Stock Down 0.7% Texas Instruments stock opened at $265.60 on Friday. The company’s 50-day moving average price is $291.25 and its two-hundred day moving average price is $258.71. The company has a quick ratio of 3.44, a current ratio of 4.86 and a debt-to-equity ratio of 0.72. The stock has a market cap of $242.56 billion, a P/E ratio of 40.43, a P/E/G ratio of 1.05 and a beta of 1.33. Texas Instruments Incorporated has a twelve month low of $152.73 and a twelve month high of $334.03.
Texas Instruments (NASDAQ:TXN – Get Free Report) last posted its quarterly earnings results on Wednesday, July 22nd. The semiconductor company reported $2.14 EPS for the quarter, topping analysts’ consensus estimates of $1.91 by $0.23. Texas Instruments had a return on equity of 35.77% and a net margin of 31.11%.The company had revenue of $5.46 billion during the quarter, compared to analysts’ expectations of $5.26 billion. During the same quarter in the previous year, the firm earned $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, analysts expect that Texas Instruments Incorporated will post 8.42 EPS for the current year.
Texas Instruments Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 11th. Shareholders of record on Friday, July 31st were paid a dividend of $1.42 per share. The ex-dividend date of this dividend was Friday, July 31st. This represents a $5.68 annualized dividend and a yield of 2.1%. Texas Instruments’s payout ratio is presently 86.45%.
Texas Instruments Company 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.
See Also Five stocks we like better than Texas Instruments 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding TXN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Texas Instruments Incorporated (NASDAQ:TXN – Free Report).
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Texas Instruments za posledních 12 měsíců vrátila akcionářům 5,8 mld. USD a volný peněžní tok vzrostl na 6,5 mld. USD. Ve 2. čtvrtletí tržby stouply o 23 % a provozní zisk o 48 %.
Key Takeaways Texas Instruments returned $5.8B to shareholders as trailing 12-month free cash flow climbed to $6.5B.TXN's second-quarter revenues rose 23% year over year, while operating profit surged 48%.TXN expects 2026 capital spending of $2B-$3B, down about 34%-56% from the 2025 level.
Texas Instruments Incorporated (TXN - Free Report) is showing that its improving business momentum is translating into stronger cash generation, raising the question of whether bigger shareholder payouts could follow. The company returned $5.8 billion to shareholders over the past 12 months through dividends and share repurchases.
Texas Instruments’ robust cash flow generation ability is aiding its aggressive shareholder return policy. TXN generated $6.5 billion of free cash flow (FCF) over the trailing 12 months, up sharply from $1.8 billion a year earlier. FCF represented 33.6% of revenues compared with 10.6% in the prior-year period. Operating cash flow also climbed 35% to $8.7 billion.
Improving business conditions should provide further support for share buybacks and dividend payments. Second-quarter revenues jumped 23% year over year to $5.46 billion, while operating profit surged 48%.
A decline in capital expenditure is also anticipated to help Texas Instruments boost shareholders’ returns. Over the past few years, TXN invested aggressively in new 300-millimeter wafer fabrication plants and assembly and test facilities to expand internal manufacturing capacity. In 2025, capital expenditures totaled approximately $4.55 billion.
The spending pace is now easing. In the first half of 2026, Texas Instruments’ capital expenditures were $676 million, significantly down from $1.31 billion in the same period of last year. Management expects 2026 capital expenditures to be between $2 billion and $3 billion, about a 34% to 56% reduction from the 2025 level. This shift could significantly improve the company’s FCF and strengthen its ability to return more capital to shareholders.
Texas Instruments is benefiting from broadening demand across industrial, data center and automotive markets, while its analog and embedded processing franchises support durable long-term growth. With these key growth catalysts, TXN appears increasingly capable of enhancing shareholder returns. The Zacks Consensus Estimate for TXN’s 2026 revenues is pegged at $21.7 billion, indicating a 22.7% year-over-year increase.
TXN’s Rivals With Strong Cash Returns: ADI and ONAnalog Devices, Inc. (ADI - Free Report) is a close rival to Texas Instruments in analog chips and offers a strong shareholder-return profile. During second-quarter 2026 results, Analog Devices revealed that it generated FCF of $4.6 billion in the trailing 12 months, equal to 36% of revenues, and returned $5 billion to shareholders. Analog Devices also maintains a long record of dividend growth, supporting its appeal to income-focused investors.
ON Semiconductor Corporation (ON - Free Report) is another relevant competitor, particularly in power and automotive semiconductors. During second-quarter 2026 results, ON Semiconductor disclosed that it generated $1.5 billion in FCF. The company repurchased $1.5 billion of stock during the period, bringing shareholder returns to roughly 100% of FCF in the trailing 12 months. ON Semiconductor’s AI data-center business is also expected to more than double in 2026, potentially strengthening future cash generation.
TXN’s Price Performance, Valuation and EstimatesShares of Texas Instruments have rallied 59.4% year to date compared with the Zacks Semiconductor - General industry’s 24% growth.
From a valuation standpoint, TXN trades at a forward price-to-earnings ratio of 29.69, significantly higher than the industry’s average of 22.30.
Texas Instruments Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Texas Instruments’ 2026 and 2027 earnings implies a year-over-year increase of 54.5% and 17.3%, respectively. Estimates for 2026 and 2027 have been revised upward over the past seven 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.
Texas Instruments ve 2. čtvrtletí zvýšil tržby o 23 % meziročně a zisk na akcii podle non-GAAP vyskočil o 52 %. Tržby z datových center se meziročně zdvojnásobily.
Key Takeaways TXN fell 11.2% in a month, but the decline came amid a broader semiconductor sell-off.Data center revenues doubled year over year in Q2 2026 as AI infrastructure demand strengthened.TXN plans to make more than 95% of wafers internally by 2030, supporting costs, supply and margins. Texas Instruments Incorporated (TXN - Free Report) shares have dropped 11.2% over the past month, significantly lagging the Zacks Computer and Technology sector’s 4.5% gain. While such a sharp decline may worry investors, the weakness is not unique to Texas Instruments.
Several semiconductor stocks have also come under pressure during the same period. Companies such as Amtech Systems (ASYS - Free Report) , QUALCOMM (QCOM - Free Report) and STMicroelectronics (STM - Free Report) have also struggled during the same period. Amtech Systems, QUALCOMM and STMicroelectronics have fallen 16.6%, 18.8% and 27%, respectively. This broad-based sell-off suggests that investors are pulling back from semiconductor stocks as a whole rather than losing confidence in Texas Instruments specifically.
TXN One-Month Price Return Performance
Image Source: Zacks Investment Research
The recent decline is largely due to two concerns. First, investors are questioning whether hyperscalers will generate sufficient returns from their massive artificial intelligence (AI) investments. Second, semiconductor stocks enjoyed a strong rally earlier in 2026, pushing valuations higher and encouraging investors to lock in profits.
Despite this negative sentiment, Texas Instruments' underlying business remains strong. The company continues to execute well, and its long-term growth drivers are intact. For long-term investors, the recent pullback could present an attractive buying opportunity rather than a reason to stay away.
TXN’s Strong Financial Results Reinforce the Bullish ThesisTexas Instruments continues to deliver impressive financial results. Second-quarter 2026 revenues increased 23% year over year, while non-GAAP earnings per share jumped 52%. These numbers indicate that demand is improving across multiple end markets.
Texas Instruments also expects the momentum to continue. For the third quarter, management projects revenues between $5.65 billion and $6.15 billion, representing roughly 25% year-over-year growth at the midpoint. Earnings are expected to be between $2.23 and $2.57 per share, implying nearly 62% growth at the midpoint. The guidance reflects healthy demand across several markets, particularly those tied to AI infrastructure.
Wall Street shares the same optimism. The Zacks Consensus Estimate calls for continued revenue and earnings growth in both 2026 and 2027, reinforcing confidence that the company's growth story is far from over.
Image Source: Zacks Investment Research
AI Chip Demand Continues to Power Texas Instruments' GrowthTexas Instruments is not competing with NVIDIA or AMD in AI accelerators, but it is quietly becoming an important beneficiary of the AI boom. The company supplies analog and embedded chips that perform critical functions inside AI infrastructure. These chips manage power, process signals, regulate cooling systems, control motors and enable connectivity across data centers, industrial equipment and automotive applications.
As AI servers become larger, faster and more power-intensive, demand for these components continues to rise. Every new AI data center requires significantly more power management and sensing chips than traditional computing systems, creating a growing opportunity for Texas Instruments.
Instead of competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout. This positions Texas Instruments to capture AI spending regardless of which GPU maker ultimately dominates the data center market.
The numbers already reflect this trend. Texas Instruments' data center business reached an annual revenue run rate of approximately $1.2 billion in 2025, growing more than 50% year over year. During the second quarter of 2026, data center revenues doubled from the prior-year quarter and increased 20% sequentially. Such strong growth suggests AI infrastructure could become an increasingly important revenue driver over the coming years.
TXN Eyes Competitive Lead Through Internal ManufacturingTexas Instruments is also strengthening its long-term competitive position through its manufacturing strategy. Unlike many semiconductor companies that depend heavily on third-party foundries, Texas Instruments plans to produce more than 95% of its wafers internally by 2030.
Although this approach requires significant upfront investment, it offers meaningful long-term benefits. Greater control over manufacturing should improve supply-chain reliability, lower production costs over time and help protect margins during industry shortages.
Government support further strengthens this strategy. Texas Instruments expects to receive 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 reduce expansion costs while boosting profitability over the long run.
TXN’s Strong Cash Generation Supports Shareholder ReturnsTexas Instruments' ability to generate cash remains one of its biggest strengths. Over the past 12 months, the company generated $8.67 billion in operating cash flow and $6.53 billion in free cash flow. It also finished the second quarter with $7 billion in cash and short-term investments, giving it ample financial flexibility.
This strong cash position allows the company to invest aggressively in manufacturing expansion while continuing to reward shareholders.
During the first half of 2026, 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 are able to invest heavily for future growth while consistently returning such large amounts of cash to investors.
Solid Growth Projections Justify TXN’s Premium ValuationTexas Instruments is not a bargain stock. It currently carries a Value Score of D, reflecting its premium valuation.
TXN currently trades at a forward 12-month P/E ratio of 29.91, well above the sector average of 20.74. Compared with other semiconductor leaders, Texas Instruments also trades at a higher earnings multiple than STMicroelectronics, Amtech Systems and QUALCOMM. At present, STMicroelectronics, Amtech Systems and QUALCOMM are trading at P/E multiples of 24.04, 21.65 and 14.01, respectively.
Texas Instruments Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
However, premium valuations are often justified when a company consistently delivers earnings growth, generates strong cash flow and maintains durable competitive advantages.
Texas Instruments fits that profile. The company continues to benefit from expanding AI infrastructure spending, generates substantial free cash flow, maintains a healthy balance sheet and has a long track record of rewarding shareholders through dividends and share buybacks. Those strengths make its premium valuation easier to justify.
Conclusion: Buy Texas Instruments SharesTexas Instruments appears well-positioned to benefit from the ongoing expansion of AI infrastructure, growing data center investments and its differentiated manufacturing strategy.
While the stock is not inexpensive, its premium valuation reflects the quality of the business. Strong earnings growth, rising AI-driven demand, healthy cash generation and consistent shareholder returns support a positive investment case.
Currently, Texas Instruments sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Texas Instruments klesl asi o 16 % od 52týdenního maxima, protože slabší výhled tržeb za 3. čtvrtletí zklamal investory. Ve 2. čtvrtletí tržby vzrostly o 23 % na 5,5 miliardy USD a EPS stoupl o 52 % na 2,14 USD.
Shares of Texas Instruments (TXN -0.58%) are down about 16% after hitting a 52-week high of $334 in June, and the company's second-quarter earnings results didn't provide any lift to the stock.
Investors focused on disappointing guidance rather than the clear advantages the company has in meeting growing data center demand, setting up a compelling buying opportunity.
Image source: Getty Images.
Demand trends point to continued growth Revenue grew 23% year over year, reaching $5.5 billion, while earnings per share jumped 52% to hit $2.14 in the second quarter. Those numbers are strong enough to justify the stock's forward price-to-earnings multiple of 32 at the time of writing.
Strong demand in analog and embedded processing seems to indicate a sustained recovery across the business rather than a temporary growth spurt. Industrial revenue grew 30% year over year, with broad-based demand across geographies and sectors. The company's automotive business also noted a solid mid-teens increase over the year-ago quarter.
The data center market is another reason investors should be bullish on Texas Instruments in the long term. Data center revenue doubled year over year and increased 20% over the previous quarter. CEO Haviv Ilan said, "I think there is more tailwind ahead."
What's more, Texas Instruments could generate even higher revenue, given its additional manufacturing capacity. This will allow Texas Instruments to handle short-lead-time orders that competitors may take longer to fill. This is a clear competitive advantage for the company, allowing it to continue benefiting from growing investment in artificial intelligence (AI) infrastructure.
Today's Change
(
-0.58
%) $
-1.60
Current Price
$
275.74
Why the stock fell and is still a buy The company's third-quarter guidance wasn't as strong as investors expected. Analysts expected third-quarter revenue guidance of $5.9 billion. Instead, management guided for revenue to be between $5.65 billion and $6.15 billion. That range leaves room for revenue to come in lower than estimates, which is why the stock is down.
The main reason for the soft revenue guidance is not demand but the impact of price increases. The company has begun raising prices, but management doesn't expect those increases to affect revenue until the fourth quarter.
The stock's sell-off appears to be driven by a focus on short-term issues rather than the company's long-term growth trajectory. Management noted that data center demand is also driving growth for the industrial business, providing a stronger tailwind than perhaps Wall Street realizes.
One reason to like the stock is its above-average dividend yield of about 2.1%. That is attractive for a top semiconductor company, with 22 consecutive years of dividend increases. The dividend is funded entirely by free cash flow, which came in at a healthy $6.5 billion on a trailing-12-month basis.
Analysts also expect earnings to grow by around 23% annually in the coming years. It's rare to find a top tech stock benefiting from the AI build-out that offers both a 2% dividend yield and high-double-digit earnings growth prospects, making Texas Instruments an interesting opportunity for investors.
Texas Instruments těží z poptávky po AI: tržby ve 2. čtvrtletí meziročně vzrostly o 23 % a zisk o 53 %. Firma navíc ve 3. čtvrtletí očekává tržby 5,65 až 6,15 miliardy USD.
Texas Instruments (TXN -1.90%) is relatively late to the artificial intelligence (AI) party. The stock was mostly flat over the past five years until a 58% year-to-date rally surprised investors. Its analog chips manage the electrical power that AI chips need.
These analog chips essentially serve as the middleman between electric grids and AI chips. Analog chips process electricity and distribute it to AI chips in a way that lets them function without overheating. They position Texas Instruments for a multiyear run as AI infrastructure demand accelerates.
Image source: Getty Images.
Revenue growth is picking up Fundamental growth is a key factor for stocks that beat the S&P 500 over the long run, and Texas Instruments has been checking off that box. Its 23% year-over-year growth rate in the second quarter was its highest in multiple years.
The recent growth isn't a fluke. Texas Instruments anticipates $5.65 billion to $6.15 billion in Q3 revenue. A midpoint of $5.9 billion implies a 24.5% year-over-year growth rate. Sequential growth has been solid, but that is a normal trend for Texas Instruments. If the company delivers positive sequential growth in Q4, that's a major catalyst, since that's the slower season for Texas Instruments.
Texas Instruments barely beat the top end of its Q2 guidance when delivering results. If its analog chips continue to gain momentum in data centers, it might end up beating the top end of Q3 guidance. That would position the company for at least 38% year-over-year revenue growth.
Texas Instruments is achieving this growth while boosting its net income. Profits were up by 53% year over year in the second quarter.
Today's Change
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-5.41
Current Price
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Prudent financial management Texas Instruments isn't a flashy name, and the executives never intended for it to reach that point. The company's website starts with a boring quote from CEO Haviv Ilan, but it's boring in a good way.
"We believe that long-term growth of free cash flow per share is the ultimate measure to generate value. We achieve this by strengthening our competitive advantages, being disciplined with capital allocation and pursuing efficiency," Ilan wrote on the investor relations site.
The emphasis on cash flow explains why Texas Instruments' net income is rising faster than revenue. It also offers some insight into why it's one of the few fast-growing AI stocks that still has a dividend yield above 2%.
To top it all off, Texas Instruments actually pulled back on capital expenditures (capex) while other companies are rushing to throw their money at AI. The company heavily invested in manufacturing capabilities for multiple years. Now, it's scaling down capex while enjoying the fruits of its labor.
The second quarter featured $514 million in capex, which is a 60.6% year-over-year reduction. At a time when tech giants can deliver good results that get overlooked due to rising capex, Texas Instruments is delivering high growth rates while cutting back on spending. It's a rarity in the current market that can justify an extended rally.
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.
Featured Articles Five stocks we like better than Texas Instruments Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Small Caps Are Crushing the S&P 500—3 Stocks Still Worth Buying Moog Is More Than a Missile Maker, and Wall Street Is Noticing A Boring Dividend Growth Strategy Becomes a Solid Defensive Play Want to see what other hedge funds are holding TXN? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Texas Instruments Incorporated (NASDAQ:TXN – Free Report).
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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
Image Source: Zacks Investment Research
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.
