Valued at a market cap of $146.5 billion, Texas Instruments Incorporated (TXN) designs and manufactures analog and embedded semiconductor solutions that power electronic systems across a wide range of industries. The Dallas, Texas-based company serves markets such as industrial, automotive, personal electronics, communications, and enterprise systems.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and TXN fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the semiconductor industry. The company’s core strengths include its leadership position in analog chips, long product life cycles that support recurring and stable revenue, and strong in-house manufacturing capabilities.
Despite its notable strength, this tech giant has slipped 27% from its 52-week high of $221.69, reached on Jul. 11. Shares of TXN have declined 21.5% over the past three months, considerably lagging behind the Nasdaq Composite’s ($NASX) 7.4% return during the same time frame.
Moreover, on a YTD basis, shares of TXN are down 13.7%, compared to NASX’s 19.2% gain. In the longer term, TXN has fallen 20.3% over the past 52 weeks, notably underperforming NASX’s 20.8% uptick over the same time frame.
To confirm its bearish trend, TXN has been trading below its 200-day moving average since early September, and has remained below its 50-day moving average since late August.
On Oct. 21, TXN reported its Q3 results. Due to growth across all end markets, the company’s revenue increased 14.2% year-over-year to $4.7 billion, surpassing consensus estimates by 1.9%. Meanwhile, its EPS of $1.48 increased slightly from the prior-year quarter and still topped analyst expectations. However, its shares fell 5.6% in the following trading session as its management issued an underwhelming Q4 outlook, fueling concerns that a full recovery in the analog chip market may take longer than anticipated amid ongoing uncertainty around semiconductor-related tariffs.
TXN has also considerably underperformed its rival, Analog Devices, Inc. (ADI), which gained 12.7% over the past 52 weeks and 18.6% on a YTD basis.
Despite TXN’s recent underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 34 analysts covering it, and the mean price target of $192.01 suggests an 18.7% premium to its current price levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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