Texas Instruments TXN
Texas Instruments is a leading manufacturer of analog semiconductors and embedded processors, with a business model focused on in-house manufacturing and a diversified portfolio of products for industrial, automotive, and consumer electronics applications. Texas Instruments shows solid fundamentals with a 35.18% ROE and 42.58% operating margin, but its valuation is demanding (P/E 42.2) and 51.8% earnings growth suggests a potential cyclical peak in semiconductors.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Texas Instruments is a leading manufacturer of analog semiconductors and embedded processors, with a business model focused on in-house manufacturing and a diversified portfolio of products for industrial, automotive, and consumer electronics applications. Texas Instruments shows solid fundamentals with a 35.18% ROE and 42.58% operating margin, but its valuation is demanding (P/E 42.2) and 51.8% earnings growth suggests a potential cyclical peak in semiconductors.
Score by category
| Category | Score |
|---|---|
| Financial health | 8.1 |
| Quality / Moat | 8.2 |
| Valuation | 4.5 |
| Growth | 8.3 |
| Dividend | 5.0 |
| Momentum | 7.4 |
| Risk & Context | 4.3 |
OVERALL SCORE: 6.6/10
Context and risks
TXN is a semiconductor manufacturer with exposure to the AI cycle and geopolitical tensions affecting the tech sector. The rise in 10-year Treasury yields (5.17%) and AI concerns pressure semiconductor stocks, though TXN's solid balance sheet (ND/EBITDA 0.74) mitigates the impact.
News considered in the analysis
- Texas Instruments Extends Dividend Growth Streak to 23 Years with 7% Raise — El aumento del dividendo del 7% ya está anunciado y descontado; refuerza la calidad del accionista pero no aporta información nueva al precio.
- Texas Instruments Is Up 56% YTD. 2 More Dividend Stocks Are Just as Hot. — Listículo sin información nueva; el rendimiento YTD ya está reflejado en el momentum.
- Prediction: ON Semiconductor Could Be a Sleeper AI Infrastructure Winner — Noticia sobre un competidor (ON Semi), no sobre TXN; sin impacto directo.
- Prediction: Robotics Will Be the Biggest Opportunity Within the AI Supercycle. 1 Dividend Growth Stock to Own. — Opinión genérica sobre el superciclo de IA; no menciona a TXN ni aporta datos concretos.
- 67-Year-Old Costs Himself $1,315 A Year In Taxes Using A Treasury Fund To Add $1,000 A Month In Income To His Social Security And Pension. If He’d Used SCHD Instead His Tax Bill Would Be Reduced By Over 60% — Publicidad/clickbait sin información sobre TXN.
Verdict: Hold; business quality is excellent, but the elevated multiple and cyclical peak risk limit near-term upside.
Main risk: The main risk is the demanding valuation (P/E 42.2) combined with 51.8% earnings growth that could reverse if the semiconductor cycle cools, especially with 10-year yields at 5.17%.
Other Technology companies
Neighbours in the sector ranking, to compare without going back to the index.
See all 1,000+ companies in the index →