
Texas Instruments (TXN) is a leading technology company that has become the eighth-biggest semiconductor in the world with a market cap of over $188 billion.
It is a manufacturer of semiconductors that are used in industries like manufacturing and automobile.Â
Most of its business comes from the analog segment, which makes chips that convert real-world signals like sound and temperatures into a stream of digital data that can be processed by other semiconductors. This segment accounts for about 74% of its business.Â
The other part of its business is in embedded processing, where it makes digital brains for many electronic equipment. It accounts for about 20% of its business, while its other segment makes products like calculators and application-specific integrated circuits.
Texas Instruments’ semiconductors are different than those made by other companies like AMD, Nvidia, and Intel. For one, they are usually bulky, unlike those made by other firms. Nonetheless, they are highly important chips that power most items that we use today.
Texas Instruments annual revenues are often cyclical and depend on the performance of other industries like automobile and electronics. For example, its sales rose to $20 billion in 2022 and then dropped to $17.5 billion in 2023.
Texas Instruments stock has risen by 45% in the last twelve months and was trading at $206, while its HypeIndex metric rose to 205%.
Positive hype
Texas Instruments generated positive hype after publishing its third-quarter financial results last week.
These results were better than expected, with its revenue of $4.15 billion being higher than estimates by $31.2 million. Its earnings per share (EPS) of $1.47 was also higher than estimates by 10 cents.Â
While these results were better than estimates, they showed that its business was still facing issues. The revenue was down by 8% from the same period last year, while its operating profit and net income fell by 18% and 20%. The EPS was also down by 21%.
Texas Instrument provided a positive forward guidance for the fourth quarter. It expects its business to bring revenue of between $3.7 billion and $4 billion. The upper side of the range was higher than the average estimate of $3.87 billion.Â
It is a future dividend aristocrat that has boosted its dividends in the last 21 years. It has a dividend yield of 2.6%, higher than some other semiconductor companies.Â
Texas Instrument has a leading market share in key industries and has long relations with big clients like General Motors, Toyota, Ford, Honeywell, and Rockwell Automation.
The stock remains above the 50-day moving averages, pointing to potential gains ahead.
Negative hype
Texas Instruments' growth is not moving in the right direction, with its annual revenue in 2024 expected to drop by 11.5% to $15.5 billion. Fortunately, analysts expect that its 2025 revenue will rise to $17.2 billion.
The company has a big business in China, which could be affected if Donald Trump restarts his trade wars if he wins the upcoming general election.Â
Texas Instruments has higher inventories, which may affect its future profitability. Total inventories rose to $4.2 billion last quarter from $3.9 billion in the same period. Its inventories as a percentage to assets has continued growing.
Texas Instruments is highly overvalued since it has a price-to-earnings ratio of 40, higher than the industry median of 29. A high valuation multiple would be understandable if the firm’s business was growing.
The stock’s current price is in the same level as what analysts expect, meaning that it lacks more upside.
Texas Instruments stock summary

The daily chart shows that the Texas Instrument share price has stalled in the past few weeks, a few points below the year-to-date high of $214. It has remained above the 50-day and 100-day Exponential Moving Averages (EMA) and the 23.6% retracement point.
Therefore, more upside will be confirmed if the stock rises above the all-time high. The alternative scenario is where it drops below the 100-day moving average at $197.
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HypeIndex is an AI platform that detects Hype in stocks and cryptos before it moves the market, providing reliable early detection for profitable investment opportunities.
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