ALTSTATION.IO

Texas Instruments Incorporated (TXN) Stock Analysis

By Nova Skye | AltStation.io | Updated February 07, 2026

Price

$223.47

Change

-0.24%

Market Cap

$203.02B

Avg Volume

7.8M

Company Overview

Texas Instruments Incorporated (TXN) designs and manufactures semiconductors crucial for a wide array of electronic devices. Their product lineup includes analog chips and embedded processing components that power everything from automotive systems to consumer electronics and industrial machinery. Customers range from large electronics manufacturers to small startups, both in the U.S. and globally, including key markets in China and Europe.

Texas Instruments is a market leader in the semiconductor space, particularly in the analog segment. Their extensive portfolio and established reputation provide them with a competitive edge, but they face pressure from rivals like Analog Devices and STMicroelectronics. Market dynamics include increasing demand for efficient power management solutions and embedded processing, driven by trends in automation and the Internet of Things (IoT). However, supply chain challenges and rising raw material costs pose ongoing threats.

Currently, Texas Instruments is in a solid growth phase, focusing on expansion in high-demand sectors like automotive and industrial applications. They recently made strides in diversifying their product offerings and investing in new manufacturing capabilities. With significant cash flow and a commitment to returning capital to shareholders through dividends and buybacks, TXN is well-positioned to capitalize on future opportunities.

Key Financials

Market Cap

$203.02B

Revenue

$17.68B

EBITDA

$8.06B

Gross Margin

57.0%

Profit Margin

28.3%

Revenue Growth

10.4%

Total Cash

$4.88B

Total Debt

$14.05B

Free Cash Flow

-$172.88M

52-Week Price Performance Analysis

Price Statistics

P/E Ratio

41.07

Forward P/E

28.51

Beta

0.99

52-Week High

$228.83

52-Week Low

$139.95

EPS

$5.44

50-Day Avg

$186.84

200-Day Avg

$185.34

Price/Book

12.45

Technical Analysis

The overall trend for Texas Instruments Incorporated (TXN) over the past 52 weeks has been upward, with a significant 26.7% increase, suggesting strong bullish momentum. The key support level is around $180, highlighted by multiple touchpoints in the chart, while the resistance level is evident near $221.44, where prices have recently peaked. Notable price patterns include a series of higher lows and higher highs, indicating a robust uptrend, particularly from October through February. In recent weeks, the momentum has accelerated as TXN has consistently approached and tested the resistance at $221.44, signaling potential breakout behavior. Currently priced at $223.47, TXN is trading above its 52-week range, which indicates bullish sentiment and potential for further upward movement.

Recent News and Developments

Market Update

Here’s a summary of the latest news and developments for Texas Instruments Incorporated (TXN) stock in the past week:

1. Texas Instruments to Acquire Silicon Labs for $7.5 Billion

On February 4, 2026, Texas Instruments announced a definitive agreement to acquire Silicon Labs in an all-cash transaction valued at approximately $7.5 billion ($231.00 per share). This strategic move is expected to expand Texas Instruments’ portfolio in wireless connectivity solutions and aims to generate around $450 million in annual manufacturing and operational synergies within three years post-close. The acquisition is anticipated to conclude in the first half of 2027, subject to regulatory and shareholder approvals.

2. Q4 2025 Earnings Report and Positive Q1 2026 Outlook

Texas Instruments reported its fourth-quarter 2025 earnings, with EPS of $1.27 and revenue of $4.4 billion, slightly missing analyst estimates of $1.29 EPS and $4.45 billion revenue. Despite the slight miss, the stock reacted positively, with shares rising due to a strong Q1 2026 outlook provided by management, suggesting sequential acceleration with revenue guidance between $4.32 billion and $4.68 billion and EPS between $1.22 and $1.48.

Market Sentiment and Analyst Recommendations

Bull Case

The Silicon Labs acquisition for $7.5 billion is a legitimate strategic move that fills a real gap in TXN’s portfolio. Management is confident enough to project $450 million in annual synergies within three years, which would represent a 2.5% boost to current revenue run rate. Q1 2026 guidance shows sequential acceleration with revenue expected between $4.32 billion and $4.68 billion, and the company just posted 10.4% annual revenue growth despite a slight earnings miss. The 26.7% gain over 52 weeks isn’t hype — it reflects genuine momentum and institutional conviction. At $223.47, TXN is trading above resistance at $221.44, suggesting institutional buyers are still accumulating. The India R&D center signals management is investing for long-term design capacity, not just cost-cutting. With $4.88 billion in cash and the ability to fund this deal, TXN has the balance sheet to execute.

Bear Case

A P/E of 41.07 is stretched for a semiconductor company, especially one posting single-digit earnings growth relative to its revenue growth rate. The Silicon Labs acquisition is highly dilutive in the near term — $7.5 billion in cash outlay means TXN is burning through its liquidity, and total debt already sits at $14.05 billion against $4.88 billion in cash. Analyst consensus is a “hold” with a target price of $216.48, which is 3% below current levels, signaling limited upside at these valuations. KeyCorp’s downgrade from “strong-buy” to “hold” in early February is a red flag about sentiment deterioration among the analyst community. Insider selling by Ahmad Bahai suggests insiders don’t see compelling value at $223 levels. The analyst target range is wide ($160 to $270), indicating real uncertainty about fair value. If the synergies from Silicon Labs miss, or if macro conditions slow semiconductor demand, TXN could see a sharp multiple compression.

What to Watch

Monitor Q1 2026 actual results against the $4.32-$4.68 billion revenue guidance in April/May. Any miss would validate the bear thesis and likely trigger a 5-10% pullback. Track the Silicon Labs deal closure timeline closely — any regulatory delays or deal complications would be a major negative. Watch gross margins quarter-over-quarter; if they compress below 60%, it signals pricing pressure or unfavorable product mix. The key support level sits at $180, and a break below that would invalidate the bullish chart setup. Pay attention to capital allocation announcements — any dividend cut or share buyback suspension would signal management concern about cash flow. Finally, monitor semiconductor industry demand indicators like semiconductor equipment billings and foundry utilization rates, as TXN’s analog and embedded processing segments are highly cyclical.

Analyst Consensus

HOLD

Based on 32 analyst opinions

Low Target

$160.00

Mean Target

$216.48

High Target

$270.00

Earnings and Financial Data

Sector

Technology

Industry

Semiconductors

Employees

N/A

Earnings & Dividends

Next Earnings

Apr 28, 2026

EPS (Trailing)

$5.44

Dividend Yield

254.0%

Payout Ratio

100.9%

Frequently Asked Questions

Is TXN a good stock to buy?

Currently, analysts recommend a HOLD for Texas Instruments (TXN) with a price target of $216.48. Given its P/E of 41.07, the stock appears overvalued, suggesting potential caution for new investors.

What is TXN’s price target?

The current analyst consensus for TXN’s price target is $216.48. This target is slightly below its current price of $223.47, hinting at limited short-term upside from the current valuation.

Does TXN pay a dividend?

Yes, Texas Instruments pays a dividend with a yield of 254.0%. This high yield can be attractive for income-focused investors, although it’s essential to evaluate its sustainability.

What are TXN’s recent price movements?

TXN’s stock has fluctuated between $139.95 and $228.83 over the last 52 weeks. As of now, it’s trading near its 52-week high, which could indicate a correction risk.

How does TXN’s P/E ratio compare to industry standards?

TXN’s P/E ratio of 41.07 is relatively high, especially compared to its forward P/E of 28.51. This suggests that while growth is expected, the current valuation may not be justified, warranting a cautious approach.

Related Stock Reports

Disclaimer: This report is for informational purposes only and does not constitute financial advice. The analysis and opinions expressed are those of AltStation.io and should not be relied upon as the sole basis for investment decisions. Always conduct your own research and consult with a qualified financial advisor before making investment decisions. Past performance does not guarantee future results. Updated February 07, 2026.