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Texas Instruments Incorporated (TXN), with a market cap of $195.2 billion, is a leading semiconductor company specializing in designing and manufacturing semiconductors and integrated circuits. The Dallas-based company also develops digital light processing technology and educational products such as calculators, microcontrollers, and multi-core processors.
Companies valued at $10 billion or more are generally considered "large-cap" stocks, and Texas Instruments fits this criterion perfectly, boasting a market cap exceeding the mark. Its strong brand reputation, broad product portfolio, and technological expertise, focus on high-quality products, and innovation have solidified its industry position and kept it ahead of the competition in a rapidly changing market.
Further, the analog chip manufacturer touched its 52-week high of $214.66 in the Aug. 30 trading session. Shares of TXN are up 9.5% over the past three months, outperforming the broader Nasdaq Composite’s ($NASX) 5.8% gains over the same time frame.
Over the longer term, TXN is up 25.7% on a YTD basis, outpacing NASX's 18% gains. However, shares of Texas Instruments have gained 25.6% over the past 52 weeks, lagging behind NASX's 27% returns over the same time frame.
TXN has been trading above its 50-day moving average since late April and over its 200-day moving average since mid-August, indicating a bullish price trend.
On Aug. 21, TXN stock popped 2.9% following the release of its midyear update on its long-term spending plans on Aug. 19. The company lowered its 2026 spending outlook due to a severe downturn in the analog chip industry, where demand is weaker than expected. Despite high spending and reduced cash flow, Texas Instruments remains focused on industrial and automotive applications.
However, on Jul. 23, TXN shares dropped more than 3% after the company reported its Q2 earnings results, even though it raised its Q3 revenue forecast to between $3.94 billion and $4.26 billion, aligning with the consensus estimate of $4.12 billion.
Nevertheless, rival Analog Devices, Inc. (ADI) has outperformed TXN and the broader equity benchmarks over the past year. Analog Devices stock has gained 28.6% over the past 52 weeks. But its 18.3% return on a YTD basis lags behind TXN’s gains.
Analysts are cautiously optimistic about its prospects. TXN stock has a consensus rating of "Moderate Buy" from the 28 analysts in coverage, and the stock is currently trading above its mean price target of $209.09.
On the date of publication, Kritika Sarmah 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.
