/Texas%20Instruments%20Inc_%20processor-by%20Militarist%20via%20Shutterstock.jpg)
Valued at $164.7 billion by market cap, Texas Instruments Incorporated (TXN) designs, manufactures, tests and sells analog and embedded processing chips. The company’s portfolio includes over 80,000 products and it serves over 100,000 customers in various industries including industrials, automotive, personal electronics, communications equipment and enterprise systems.
The Dallas-based semiconductor designer has notably underperformed the broader market over the past year. TXN stock has gained 14.3% over the past 52 weeks and dipped 3.2% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 22.6% surge over the past year and 3.1% gains in 2025.
Zooming in further, while TXN has outpaced the industry-focused iShares Semiconductor ETF’s (SOXX) 9.5% gains over the past year, it has notably lagged behind SOXX’ 2.4% surge in 2025.
Despite beating Street’s topline and earnings expectations, Texas Instruments’ stock prices plummeted 7.5% in the trading session after the release of its Q4 2024 results on Jan. 23. Although its revenues for the quarter declined 1.7% year-over-year to $4 billion, it surpassed the Street’s expectations by a notable 3.9%. Meanwhile, its earnings of $1.30 per share exceeded analysts’ consensus estimates by 9.2%. However, the company’s Q1 2025 revenue guidance of $3.74 billion to $4.06 billion and EPS guidance of $0.94 to $1.16 fell short of the Street’s expectations and shattered investor confidence.
For the current fiscal 2025, ending in December, analysts expect Texas Instruments’ earnings to increase 4.2% year-over-year to $5.42 per share. Furthermore, the company has a robust earnings surprise history. It has surpassed analysts’ bottom-line expectations in each of the past four quarters.
Among the 30 analysts covering the TXN stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy,” 16 “Hold” one “Moderate Sell,” and three “Strong Sell” ratings.
This configuration has been mostly stable over the past three months.
On Jan. 24, Truist analyst William Stein lowered TXN’s price target to $195, while maintaining a “Hold” rating.
TXN’s mean price target of $208.57 represents a 14.9% premium to current price levels, while its street-high target of $284 indicates a staggering 56.4% upside potential.
