TXN Stock Analysis — Texas Instruments
Sector: Semiconductors
AI Verdict
TXN trades at 35.7x next year's earnings while analysts expect 29.2% growth—you're paying up for steady analog chip demand, but at this price, any stumble could unwind the premium that its entrenched industrial moat currently commands.
Competitive Moat
Texas Instruments dominates analog and embedded processing chips, which are critical for industrial and automotive systems that require long product lifecycles and high reliability. Its moat comes from a vast portfolio of proprietary designs and a global sales network that makes it hard for rivals to displace TI in entrenched customer relationships.
Summary
TXN's analog chips are essential for everything from cars to factory automation, driving a 65.91% gain in the past year.
Where It Stands
The stock is up 65.91% over 12 months, trades at 35.7x forward earnings versus a 25x sector median, and an RSI of 84.2 signals extreme overbought conditions.
Key Metrics
- RSI: 84.2 — Overbought
- Trailing P/E: 46.1x
- Forward P/E: 35.7x
- PEG Ratio: 1.62
- Earnings Growth: +0.3%
- Revenue Growth: +0.1%
- Market Cap: $245.2B
- Dividend Yield: 0.02%
- 1-Year Return: 65.91%
- 52-Week High: $287.83
- 52-Week Low: $152.73
Analyst Consensus
16 Buy · 22 Hold · 6 Sell (44 analysts)
Bull Case
Analysts expect 29.2% EPS growth next year, which partially justifies the premium forward P/E of 35.7x if TXN maintains its analog chip dominance.
Bear Case
If the P/E falls from 35.7x to the sector median of 25x, the stock could drop over 30% even if earnings meet expectations, and the 84.2 RSI suggests a near-term pullback risk.
Catalyst to Watch
Watch for upcoming earnings guidance—if management signals continued double-digit EPS growth, the high valuation may hold, but any slowdown could trigger a sharp correction.