TXN Stock Analysis — Texas Instruments
Sector: Semiconductors
AI Verdict
TXN trades at a premium to the sector at 36.3x next year's earnings, so you're paying up for the reliability of its analog chip moat and the expectation that its growth rebound holds.
Competitive Moat
Texas Instruments dominates the analog and embedded semiconductor market, where decades of proprietary process technology and a vast catalog of legacy parts create high switching costs for industrial and automotive customers. Its defensibility comes from long product lifecycles and deep customer integration, not bleeding-edge AI chips.
Summary
TXN stands out for its analog chip dominance, which underpins stable, high-margin industrial and automotive sales.
Where It Stands
Texas Instruments has returned 39.09% over the past year, trades at 36.3x next year's earnings versus the 25x sector median, and its RSI of 48.5 signals a cooling-off period after a strong run.
Key Metrics
- RSI: 48.5 — Neutral
- Trailing P/E: 51.5x
- Forward P/E: 36.3x
- PEG Ratio: 1.31
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Market Cap: $274.2B
- Dividend Yield: 0.02%
- 1-Year Return: 39.09%
- 52-Week High: $334.03
- 52-Week Low: $152.73
Analyst Consensus
19 Buy · 22 Hold · 3 Sell (44 analysts)
Bull Case
With analysts expecting 42.1% EPS growth next year, the 36.3x forward P/E looks fair for a company with entrenched industrial relationships and a $274.2B market cap.
Bear Case
If the forward P/E reverts to the 25x sector median, the stock would need to fall by roughly 31%, and the 48.5 RSI suggests momentum has already cooled.
Catalyst to Watch
Watch for quarterly earnings surprises or order book updates from industrial and automotive customers, as these will test whether the 42.1% EPS growth is sustainable.