Texas Instruments (1TXN) AI Stock Analysis

Texas Instruments

(Milan:1TXN)

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Positive Factors

Broad-Based End-Market GrowthGrowth across industrial, automotive, data center, communications, and other regions reduces reliance on one customer group or application. Continued semiconductor content expansion supports a durable demand base, while portfolio breadth can help TI sustain growth through changing end-market cycles.

Negative Factors

Cyclical Revenue and Cash FlowHistorical swings show that TI’s strong profitability does not eliminate semiconductor-cycle exposure. Downturns can weaken revenue, earnings, and cash conversion, potentially reducing the pace of shareholder returns or limiting internally funded investment when capacity spending remains important.

Texas Instruments (1TXN) vs. iShares MSCI Italy ETF (EWI)

Market Cap: EUR 274.90B
Dividend Yield: 1.92%
Average Volume (3M): 36
Price to Earnings (P/E): 38.9
Beta (1Y): 0.77
Revenue Growth: 14.62%
EPS Growth: 34.18%
Country: Italy
Employees: 33,000
Sector: Technology
Sector Strength: 61
Industry: Semiconductors

Texas Instruments Business Overview & Revenue Model

Company Description

Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing. The Analog...

Texas Instruments Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:6.51%|Next Earnings Date:Jan 25, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by 28% year-over-year revenue growth, broad-based demand, major gains in industrial and data center markets, a 73% increase in operating profit, substantially higher free cash flow, and continued investment in manufacturing capacity. The main challenges were higher lead times, supply tightness among OSAT partners and equipment suppliers, limited automotive customer inventories, a decline in the other segment, and a still-delayed embedded recovery. Overall, the highlights significantly outweighed the lowlights.

Positive Updates

Strong Third-Quarter Revenue Growth

Third-quarter revenue was $6.1 billion, increasing 11% sequentially and 28% year over year. Analog revenue grew 32% year over year, while Embedded Processing revenue grew 21%.

Negative Updates

Other Segment Declined

The company's other segment declined 6% from the year-ago quarter.

Company Guidance

For the fourth quarter, TI expects revenue in the range of $5.8 billion to $6.3 billion and earnings per share to be in the range of $2.45 to $2.79, with an effective tax rate of about 13%; operating expenses are expected to be flat to slightly up, acquisition charges similar to what we saw in third quarter, same with net OI and E. For 2027, the effective tax rate is expected to be about 13% to 14%. Capital expenditures for 2026 are expected to be somewhere between 2 and 3, or $2 billion to $3 billion, and maybe on the higher end if we get that execution as planned; no 2027 CapEx numbers were provided, with CapEx described as supporting 10% growth versus a higher plan to support mid teens growth. Over the long term, the modeling framework remains 75 to 85% x depreciation fall through.

Texas Instruments Risk Analysis

Texas Instruments disclosed 18 risk factors in its most recent earnings report. Texas Instruments reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Texas Instruments Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

IT:1TXN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXPI	82Outperform	$65.44B	20.30	29.17%	1.56%	8.77%	39.24%
ADI	73Outperform	$202.12B	49.24	12.26%	1.03%	33.65%	114.59%
ON	69Neutral	$27.90B	45.36	8.38%	―	-3.14%	44.55%
MCHP	63Neutral	$42.00B	107.16	6.90%	2.35%	20.93%	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STM	60Neutral	$41.72B	80.12	2.97%	0.77%	15.81%	-2.21%

* Technology Sector Average

Performance Comparison

IT:1TXN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
IT:1TXN	Texas Instruments	269.30	132.84	97.35%
ADI	Analog Devices, Inc.	417.11	186.39	80.78%
MCHP	Microchip Technology	77.34	16.52	27.17%
NXPI	NXP Semiconductors	259.61	52.87	25.57%
ON	ON Semiconductor Corporation	71.67	21.21	42.03%
STM	Stmicroelectronics N.V.	46.74	22.53	93.05%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Texas Instruments AI Stock Analysis