TXN Texas Instruments Incorporated - Common Stock

NASDAQ · Semiconductors · View on SEC EDGAR ↗
$304.23
Price · May 20, 2026
Fundamentals as of Apr 24, 2026
52W Range
$153–$310
96% of range
Analyst Rating
HOLD
45 analysts
Price Target
$284
P/E (TTM)
31.8
ROE
30.1%
Net Profit Margin
28.3%

TXN Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$304.23
Market Cap
—
P/E (TTM)
31.8
EPS (TTM)
$5.45
Revenue (TTM)
$17.68B
Div Yield
—
ROE
30.1%
Debt/Equity
0.9
52W Range
$153 – $310

TXN Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $17.68B
10-point trend, +32.3%
2016-12-31 → 2025-12-31
EPS $5.45
10-point trend, +56.6%
2016-12-31 → 2025-12-31
Free Cash Flow $2.60B
10-point trend, -36.2%
2016-12-31 → 2025-12-31
Margins 28.3%
10-point trend, -7.5%
2016-12-31 → 2025-12-31

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
TXN
Peer Median
P/E (TTM)
5-point trend, +39.5%
31.8
33.1

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
TXN
Peer Median
Gross Margin
5-point trend, -15.5%
57.0%
54.6%
Operating Margin
5-point trend, -30.3%
34.1%
—
Net Profit Margin
5-point trend, -33.2%
28.3%
25.6%
ROA
5-point trend, -59.6%
14.3%
11.1%
ROE
5-point trend, -56.3%
30.1%
19.9%
ROIC
5-point trend, -53.0%
17.4%
—

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
TXN
Peer Median
Debt / Equity
5-point trend, +48.7%
0.9
31.8
Current Ratio
5-point trend, -18.3%
4.4
2.4
Quick Ratio
5-point trend, -51.3%
2.2
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
TXN
Peer Median
Revenue YoY
5-point trend, -3.6%
13.1%
—
Revenue CAGR 3Y
5-point trend, -3.6%
-4.1%
—
Revenue CAGR 5Y
5-point trend, -3.6%
4.1%
—
EPS YoY
5-point trend, -34.0%
4.8%
—
Net Income YoY
5-point trend, -35.6%
4.2%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
TXN
Peer Median
EPS (Diluted)
5-point trend, -34.0%
$5.45
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
TXN
Peer Median
Payout Ratio
5-point trend, +99.8%
100.0%
—

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
—
Payout Ratio
100.0%
5Y Div CAGR
—
Ex-dateAmount
May 5, 2026$1.4200
Jan. 30, 2026$1.4200
Oct. 31, 2025$1.4200
July 31, 2025$1.3600
April 30, 2025$1.3600
Jan. 31, 2025$1.3600
Oct. 31, 2024$1.3600
July 31, 2024$1.3000
May 7, 2024$1.3000
Jan. 30, 2024$1.3000
Oct. 30, 2023$1.3000
July 28, 2023$1.2400
May 5, 2023$1.2400
Jan. 30, 2023$1.2400
Oct. 28, 2022$1.2400
July 29, 2022$1.1500
May 6, 2022$1.1500
Jan. 28, 2022$1.1500
Oct. 29, 2021$1.1500
July 23, 2021$1.0200

TXN Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

HOLD 45 analysts
  • Strong Buy 7 15.6%
  • Buy 11 24.4%
  • Hold 24 53.3%
  • Sell 2 4.4%
  • Strong Sell 1 2.2%

12-Month Price Target

32 analysts · 2026-05-20
Median target $287.50 -5.5%
Mean target $283.94 -6.7%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.10%
Period EPS Actual EPS Est Surprise
March 31, 2026 $1.68 $1.38 0.30%
Dec. 31, 2025 $1.27 $1.31 -0.04%
Sept. 30, 2025 $1.48 $1.50 -0.02%
June 30, 2025 $1.41 $1.37 0.04%
March 31, 2025 $1.28 $1.08 0.20%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
TXN — 31.8 13.1% 28.3% 30.1% 57.0%
NVDA $4.57T 38.3 65.5% 55.6% 93.3% 71.1%
AVGO $1.75T 77.5 23.9% 36.2% 30.7% 67.8%
MU $136.88B 16.1 48.9% 22.8% 16.6% 39.8%
AMD — 81.1 34.3% — — —
INTC $180.78B -603.3 -0.47% -0.51% -0.25% 34.8%
QCOM $181.72B 33.8 13.7% 12.5% 22.7% —
ADI $114.64B 51.3 16.9% 20.6% 6.6% 61.5%
MRVL $68.75B 26.4 42.1% 32.6% 19.3% 51.0%
MPWR $44.15B 70.5 26.4% 22.3% 18.0% 55.2%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 16
Annual Income Statement data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Revenue 12-point trend, +35.5% $17.68B $15.64B $17.52B $20.03B $18.34B $14.46B $14.38B $15.78B $14.96B $13.37B $13.00B $13.04B
Cost of Revenue 12-point trend, +35.3% $7.60B $6.55B $6.50B $6.26B $5.97B $5.19B $5.22B $5.51B $5.35B $5.11B $5.42B $5.62B
Gross Profit 12-point trend, +35.8% $10.08B $9.09B $11.02B $13.77B $12.38B $9.27B $9.16B $10.28B $9.61B $8.26B $7.58B $7.43B
R&D Expense 12-point trend, +53.4% $2.08B $1.96B $1.86B $1.67B $1.55B $1.53B $1.54B $1.56B $1.51B $1.36B $1.27B $1.36B
SG&A Expense 12-point trend, +0.9% $1.86B $1.79B $1.82B $1.70B $1.67B $1.62B $1.65B $1.68B $1.69B $1.74B $1.73B $1.84B
Operating Income 12-point trend, +52.6% $6.02B $5.46B $7.33B $10.14B $8.96B $5.89B $5.72B $6.71B $6.08B $4.86B $4.32B $3.95B
Interest Income 3-point trend, +57.1% · · · · · · · · · $11M $6M $7M
Other Non-op 12-point trend, +995.2% $230M $496M $440M $106M $143M $313M $175M $98M $75M $155M $-16M $21M
Pretax Income 12-point trend, +47.4% $5.71B $5.45B $7.42B $10.03B $8.92B $6.02B $5.73B $6.69B $6.08B $4.93B $4.22B $3.87B
Income Tax 12-point trend, -32.7% $709M $654M $908M $1.28B $1.15B $422M $711M $1.11B $2.40B $1.33B $1.23B $1.05B
Net Income 12-point trend, +77.3% $5.00B $4.80B $6.51B $8.75B $7.77B $5.59B $5.02B $5.58B $3.68B $3.60B $2.99B $2.82B
EPS (Basic) 12-point trend, +109.6% $5.47 $5.24 $7.13 $9.51 $8.38 $6.05 $5.33 $5.71 $3.68 $3.54 $2.86 $2.61
EPS (Diluted) 12-point trend, +112.1% $5.45 $5.20 $7.07 $9.41 $8.26 $5.97 $5.24 $5.59 $3.61 $3.48 $2.82 $2.57
Shares (Basic) 12-point trend, -14.6% 909,000,000 912,000,000 908,000,000 916,000,000 923,000,000 921,000,000 936,000,000 970,000,000 991,000,000 1,003,000,000 1,030,000,000 1,065,000,000
Shares (Diluted) 12-point trend, -15.5% 913,000,000 919,000,000 916,000,000 926,000,000 936,000,000 933,000,000 952,000,000 990,000,000 1,012,000,000 1,021,000,000 1,043,000,000 1,080,000,000
EBITDA 12-point trend, +52.6% $6.02B $5.46B $7.33B $10.14B $8.96B $5.89B $5.72B $6.71B $6.08B $4.80B $4.27B $3.95B
Balance Sheet 28
Annual Balance Sheet data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Cash & Equivalents 12-point trend, +169.0% $3.23B $3.20B $2.96B $3.05B $4.63B $3.11B $2.44B $2.44B $1.66B $1.15B $1.00B $1.20B
Short-term Investments 12-point trend, -29.3% $1.66B $4.38B $5.61B $6.02B $5.11B $3.46B $2.95B $1.79B $2.81B $2.34B $2.22B $2.34B
Receivables 12-point trend, +57.5% $1.96B $1.72B $1.79B $1.90B $1.70B $1.41B $1.07B $1.21B $1.28B $1.27B $1.17B $1.25B
Inventory 12-point trend, +169.3% $4.80B $4.53B $4.00B $2.76B $1.91B $1.96B $2.00B $2.22B $1.96B $1.79B $1.69B $1.78B
Prepaid Expense 12-point trend, +147.3% $2.10B $1.20B $761M $302M $335M $302M $299M $440M $1.03B $910M $1.00B $850M
Current Assets 12-point trend, +85.3% $13.75B $15.03B $15.12B $14.02B $13.69B $10.24B $8.76B $8.10B $8.73B $7.46B $7.07B $7.42B
PP&E (Net) 12-point trend, +333.8% $12.32B $11.35B $10.00B $6.88B $5.14B $3.27B $3.30B $3.18B $2.66B $2.51B $2.60B $2.84B
PP&E (Gross) 12-point trend, +182.2% $17.68B $15.25B $13.27B $9.95B $7.86B $5.78B $5.74B $5.42B $4.79B $4.92B $5.46B $6.27B
Accum. Depreciation 12-point trend, +56.5% $5.36B $3.91B $3.27B $3.07B $2.72B $2.51B $2.44B $2.24B $2.12B $2.41B $2.87B $3.43B
Goodwill 12-point trend, -0.7% $4.33B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B $4.36B
Intangibles 7-point trend, -92.0% · · · · · $152M $340M $628M $946M $1.26B $1.58B $1.90B
Other Non-current Assets 12-point trend, +1039.9% $2.66B $3.35B $1.71B $1.14B $748M $770M $468M $140M $86M $79M $62M $233M
Total Assets 12-point trend, +99.1% $34.59B $35.51B $32.35B $27.21B $24.68B $19.35B $18.02B $17.14B $17.64B $16.43B $16.23B $17.37B
Accounts Payable 12-point trend, +73.0% $756M $820M $802M $851M $571M $415M $388M $478M $466M $396M $386M $437M
Short-term Debt Flat — no change across 11 periods $0 $0 $0 $0 $0 $0 · $0 $0 $0 $0 $0
Current Liabilities 12-point trend, +18.8% $3.16B $3.64B $3.32B $2.98B $2.57B $2.39B $2.12B $2.47B $2.26B $2.26B $2.56B $2.66B
Capital Leases 7-point trend, +136.3% $612M $663M $478M $344M $383M $249M $259M · · · · ·
Deferred Tax 12-point trend, +3.1% $66M $53M $63M $66M $87M $90M $78M $42M $78M $33M $37M $64M
Other Non-current Liabilities 10-point trend, +155.4% $1.42B $1.95B $1.34B $1.23B $1.37B $1.30B $1.51B $1.19B $1.30B $554M · ·
Total Liabilities 12-point trend, +162.3% $18.31B $18.61B $15.45B $12.63B $11.34B $10.16B $9.11B $8.14B $7.30B $5.96B $6.28B $6.98B
Long-term Debt 12-point trend, +203.3% $14.05B $13.60B $11.22B $8.73B $7.74B $6.80B $5.80B $5.07B $4.08B $3.61B $4.12B $4.63B
Total Debt 12-point trend, +202.6% $14.05B $13.60B $11.22B $8.73B $7.74B $6.80B $5.80B $5.07B $4.08B $3.61B $4.12B $4.64B
Common Stock Flat — no change across 12 periods $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B $1.74B
Retained Earnings 12-point trend, +76.2% $52.24B $52.26B $52.28B $50.35B $45.92B $42.05B $39.90B $37.91B $34.66B $33.11B $31.18B $29.65B
Treasury Stock 12-point trend, +92.9% $42.13B $40.90B $40.28B $40.21B $36.80B $36.58B $34.49B $32.13B $27.46B $25.52B $24.07B $21.84B
AOCI 12-point trend, +84.0% $-85M $-140M $-205M $-254M $-157M $-360M $-347M $-473M $-384M $-526M $-532M $-532M
Stockholders' Equity 12-point trend, +56.6% $16.27B $16.90B $16.90B $14.58B $13.33B $9.19B $8.91B $8.99B $10.34B $10.47B $9.95B $10.39B
Liabilities + Equity 12-point trend, +99.1% $34.59B $35.51B $32.35B $27.21B $24.68B $19.35B $18.02B $17.14B $17.64B $16.43B $16.23B $17.37B
Cash Flow 16
Annual Cash Flow data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Stock-based Comp 12-point trend, +51.3% $419M $387M $362M $289M $230M $224M $217M $232M $242M $252M $286M $277M
Deferred Tax 12-point trend, +68.9% $-19M $-210M $-299M $-191M $15M $-137M $81M $-105M $112M $-202M $-55M $-61M
Amort. of Intangibles 10-point trend, -100.0% · · $0 $0 $142M $198M $288M $318M $318M $319M $319M $321M
Restructuring 8-point trend, +170.0% · · · · $54M $24M $-36M $6M $11M $25M $14M $20M
Operating Cash Flow 12-point trend, +76.4% $7.15B $6.32B $6.42B $8.72B $8.76B $6.14B $6.65B $7.19B $5.36B $4.61B $4.40B $4.05B
CapEx 12-point trend, +1081.8% $4.55B $4.82B $5.07B $2.80B $2.46B $649M $847M $1.13B $695M $531M $551M $385M
Investing Cash Flow 10-point trend, -121.4% $-1.44B $-3.20B $-4.36B $-3.58B $-4.09B $-922M $-1.92B $-78M $-1.13B $-650M · ·
Debt Issued 12-point trend, +140.8% $1.20B $2.98B $3.00B $1.49B $1.50B $1.50B $1.49B $1.50B $1.10B $499M $498M $498M
Net Debt Issued 12-point trend, +140.8% $1.20B $2.98B $3.00B $1.49B $1.50B $1.50B $1.49B $1.50B $1.10B $499M $498M $498M
Stock Repurchased 12-point trend, -47.8% $1.48B $929M $293M $3.62B $527M $2.55B $2.96B $5.10B $2.56B $2.13B $2.74B $2.83B
Net Stock Activity 12-point trend, +47.8% $-1.48B $-929M $-293M $-3.62B $-527M $-2.55B $-2.96B $-5.10B $-2.56B $-2.13B $-2.74B $-2.83B
Dividends Paid 12-point trend, +277.9% $5.00B $4.79B $4.56B $4.30B $3.89B $3.43B $3.01B $2.56B $2.10B $1.65B $1.44B $1.32B
Financing Cash Flow 10-point trend, -49.3% $-5.69B $-2.88B $-2.14B $-6.72B $-3.14B $-4.55B $-4.73B $-6.33B $-3.73B $-3.81B · ·
Net Change in Cash 12-point trend, +105.8% $25M $236M $-86M $-1.58B $1.52B $670M $-1M $782M $502M $154M $-199M $-428M
Taxes Paid 12-point trend, -73.1% $296M $451M $1.35B $1.48B $1.20B $720M $570M $705M $1.80B $1.15B $1.17B $1.10B
Free Cash Flow 12-point trend, -25.8% $2.60B $1.50B $1.35B $5.92B $6.29B $5.49B $5.80B $6.06B $4.67B $4.08B $3.72B $3.51B
Profitability 8
Annual Profitability data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Gross Margin 12-point trend, +0.2% 57.0% 58.1% 62.9% 68.8% 67.5% 64.1% 63.7% 65.1% 64.3% 61.6% 58.1% 56.9%
Operating Margin 12-point trend, +12.6% 34.1% 34.9% 41.9% 50.6% 48.8% 40.8% 39.8% 42.5% 40.7% 35.9% 32.9% 30.3%
Net Margin 12-point trend, +30.7% 28.3% 30.7% 37.2% 43.7% 42.4% 38.7% 34.9% 35.4% 24.6% 26.9% 23.0% 21.6%
Pretax Margin 12-point trend, +8.7% 32.3% 34.9% 42.3% 50.1% 48.6% 41.6% 39.8% 42.4% 40.6% 36.9% 32.4% 29.7%
EBITDA Margin 12-point trend, +12.6% 34.1% 34.9% 41.9% 50.6% 48.8% 40.8% 39.8% 42.5% 40.7% 35.9% 32.9% 30.3%
ROA 12-point trend, -7.3% 14.3% 14.1% 21.9% 33.7% 35.3% 29.9% 28.5% 32.1% 21.6% 22.0% 17.8% 15.4%
ROE 12-point trend, +13.3% 30.1% 28.4% 41.4% 62.7% 69.0% 61.8% 56.0% 57.7% 35.4% 35.2% 29.4% 26.6%
ROIC 12-point trend, -9.0% 17.4% 15.8% 22.9% 37.9% 37.0% 34.3% 34.1% 39.8% 25.6% 24.9% 21.5% 19.1%
Liquidity & Solvency 4
Annual Liquidity & Solvency data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Current Ratio 12-point trend, +49.2% 4.4 4.1 4.6 4.7 5.3 4.3 4.1 3.3 3.9 3.3 2.8 2.9
Quick Ratio 12-point trend, +20.5% 2.2 2.6 3.1 3.7 4.5 3.3 3.0 2.2 2.5 2.1 1.7 1.8
Debt / Equity 12-point trend, +93.2% 0.9 0.8 0.7 0.6 0.6 0.7 0.7 0.6 0.4 0.3 0.4 0.4
LT Debt / Equity 12-point trend, +137.6% 0.8 0.8 0.6 0.6 0.5 0.7 0.6 0.5 0.3 0.3 0.3 0.4
Efficiency 3
Annual Efficiency data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Asset Turnover 12-point trend, -29.1% 0.5 0.5 0.6 0.8 0.8 0.8 0.8 0.9 0.9 0.8 0.8 0.7
Inventory Turnover 12-point trend, -49.0% 1.6 1.5 1.9 2.7 3.1 2.6 2.5 2.6 2.9 2.9 3.1 3.2
Receivables Turnover 12-point trend, -9.8% 9.6 8.9 9.5 11.1 11.8 11.6 12.6 12.7 11.8 11.0 10.8 10.7
Per Share 5
Annual Per Share data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Revenue / Share 12-point trend, +60.3% $19.37 $17.02 $19.13 $21.63 $19.60 $15.50 $15.11 $15.94 $14.78 $13.10 $12.46 $12.08
Cash Flow / Share 12-point trend, +117.4% $7.83 $6.87 $7.01 $9.42 $9.35 $6.58 $6.98 $7.26 $5.30 $4.52 $4.09 $3.60
Dividend / Share 12-point trend, +343.5% $6 $5 $5 $5 $4 $4 $3 $3 $2 $2 $1 $1
Dividend Paid / Share 9-point trend, +159.4% $6 $5 $5 $5 $4 $4 $3 $3 $2 · · ·
EPS (TTM) 12-point trend, +112.1% $5.45 $5.20 $7.07 $9.41 $8.26 $5.97 $5.24 $5.59 $3.61 $3.48 $2.82 $2.57
Growth Rates 10
Annual Growth Rates data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Revenue YoY 5-point trend, -51.4% 13.1% -10.7% -12.5% 9.2% 26.9% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -161.7% -4.1% -5.2% 6.6% · · · · · · · · ·
Revenue CAGR 5Y 4.1% · · · · · · · · · · ·
EPS YoY 5-point trend, -87.5% 4.8% -26.5% -24.9% 13.9% 38.4% · · · · · · ·
EPS CAGR 3Y 3-point trend, -386.9% -16.6% -14.3% 5.8% · · · · · · · · ·
EPS CAGR 5Y -1.8% · · · · · · · · · · ·
Net Income YoY 5-point trend, -89.2% 4.2% -26.3% -25.6% 12.6% 38.9% · · · · · · ·
Net Income CAGR 3Y 3-point trend, -428.4% -17.0% -14.8% 5.2% · · · · · · · · ·
Net Income CAGR 5Y -2.2% · · · · · · · · · · ·
Dividend CAGR 5Y 7.8% · · · · · · · · · · ·
Valuation (TTM) 6
Annual Valuation (TTM) data for TXN
Metric Trend 202520242023202220212020201920182017201620152014
Revenue TTM 12-point trend, +35.5% $17.68B $15.64B $17.52B $20.03B $18.34B $14.46B $14.38B $15.78B $14.96B $13.37B $13.00B $13.04B
Net Income TTM 12-point trend, +77.3% $5.00B $4.80B $6.51B $8.75B $7.77B $5.59B $5.02B $5.58B $3.68B $3.60B $2.99B $2.82B
P/E 12-point trend, +53.0% 31.8 36.1 24.1 17.6 22.8 27.5 24.5 16.9 28.9 21.0 19.4 20.8
Earnings Yield 12-point trend, -34.7% 3.1% 2.8% 4.2% 5.7% 4.4% 3.6% 4.1% 5.9% 3.5% 4.8% 5.1% 4.8%
Payout Ratio 12-point trend, +113.1% 100.0% 99.9% 70.0% 49.1% 50.0% 61.2% 60.0% 45.8% 57.1% 45.8% 48.4% 46.9%
Annual Payout 12-point trend, +277.9% $5.00B $4.79B $4.56B $4.30B $3.89B $3.43B $3.01B $2.56B $2.10B $1.65B $1.44B $1.32B

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-12-312024-12-312023-12-312022-12-312021-12-31
Revenue $17.68B$15.64B$17.52B$20.03B$18.34B
Gross Margin % 57.0%58.1%62.9%68.8%67.5%
Operating Margin % 34.1%34.9%41.9%50.6%48.8%
Net Income $5.00B$4.80B$6.51B$8.75B$7.77B
Diluted EPS $5.45$5.20$7.07$9.41$8.26
Balance Sheet
2025-12-312024-12-312023-12-312022-12-312021-12-31
Debt / Equity 0.90.80.70.60.6
Current Ratio 4.44.14.64.75.3
Quick Ratio 2.22.63.13.74.5
Cash Flow
2025-12-312024-12-312023-12-312022-12-312021-12-31
Free Cash Flow $2.60B$1.50B$1.35B$5.92B$6.29B

TXN AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.75
↑ Bullish

I see TXN as the unchallenged analog chip king with bulletproof margins that will shine if industrial and auto demand rebounds in 2026. Its 30.4% ROE towers over peers like MU's 22%, proving TXN turns shareholder money into profits more efficiently thanks to its design moat. Gross margins hold steady at 57.5%, which means pricing power lets it sidestep commodity pricing wars that plague others. A 4.45 current ratio gives plenty of cash buffer to fund 22 straight dividend hikes, compounding returns reliably.

↓ Bearish

TXN's lofty price assumes perfect execution, but flat earnings expose it to a cycle stall that could crush returns. P/E at 31.3 looks stretched versus MU's 27, pricing in growth that stagnant 5.51 EPS TTM doesn't deliver. Market cap dipping to 158B shows investors fleeing to AI darlings, eroding momentum. Debt-to-equity at 84 amplifies risks, turning any demand dip into outsized hits to equity.

Claude NEUTRAL 0.62
↑ Bullish

Texas Instruments is a cash machine in an unfashionable corner of semiconductors, and the market is pricing in permanent mediocrity. The company holds a 57.5% gross margin and converts nearly 30% of revenue to net profit—that is fortress-level profitability for a mature chipmaker. A 30.4% ROE on a stable, dividend-raised-for-22-years business trades at 31.2x trailing earnings, a discount to Nvidia's 45.7x despite comparable capital efficiency. If analog demand stabilizes and the market stops punishing non-AI exposure, this stock rerated 15–20% is rational.

↓ Bearish

Texas Instruments is trapped in a secular fade that valuation alone cannot fix. The stock has fallen from $179 to $221 in six months—volatile, not confident—while the broader semiconductor complex obsesses over AI. Analog chips face structural headwinds: industrial capex is soft, automotive OEM inventory is normalizing, and TXN's 84.5x debt-to-equity ratio leaves little room for a demand shock. At 31x earnings on flat EPS growth, the market is already pricing a recovery that may never come. The dividend is safe but the stock is not.

Gemini NEUTRAL 0.75
↑ Bullish

Texas Instruments is a classic compounding machine that is currently being mispriced by a market obsessed with flashy AI headlines. The company maintains a 30.4% return on equity. This level of efficiency proves that they are generating significant profit from every dollar shareholders have invested, regardless of the broader semiconductor cycle. Furthermore, with a current ratio of 4.45, they possess an incredible liquidity cushion. This means the company is in a dominant position to fund its long-term manufacturing expansion without needing to tap expensive debt markets, providing a massive safety net for investors.

↓ Bearish

The fundamental reality is that Texas Instruments is struggling to grow its top line, leaving the stock looking expensive for a company that isn't moving the needle. The trailing price-to-earnings ratio sits at 31.26. This valuation implies that investors are paying a premium for stagnant earnings, which is a difficult pill to swallow when growth is absent. Additionally, the debt-to-equity ratio of 84.48 indicates a heavy reliance on leverage to maintain its capital-intensive operations. This suggests that the company's financial flexibility is more constrained than its balance sheet might initially lead a casual observer to believe.

Chatgpt NEUTRAL 0.65
↑ Bullish

I think TXN's moat is its margin power and capital efficiency, which should support steady returns in 2026Q2. ROE TTM: 30.41%. That means TXN converts a healthy share of equity into profits, signaling efficient capital use that can fund buybacks and dividends. Gross margin TTM: 57.48%. That margin power suggests pricing resilience in analog chips, helping keep profits resilient if volumes wobble. Current ratio: 4.4503. That liquidity cushion reduces near-term financial risk and gives management room to invest in growth and maintain distributions.

↓ Bearish

I think the main risk is that the stock trades at a premium multiple for a mature analog business, which could slip if demand or AI-related capex slows. P/E TTM: 31.26x. That high multiple leaves little cushion for earnings disappointments or margin compression. PS TTM: 9.13x. Investors are paying a premium on sales, so any slowdown could compress the multiple. Debt/Equity: 84.48. High leverage raises financial risk in a downturn and can limit flexibility for buybacks or capex.

Round 2 — Responses & Rebuttals

Grok

Claude, you claimed the stock 'fallen from $179 to $221 in six months,' but the weekly closes tell a different story—it's rallied 25% from 176 in late May to 221 now. That sharp move counters your secular fade thesis, showing investors piling back into analog as industrial demand hints at stabilization. It bolsters the case for a rerating without ignoring cycle risks.

Claude

I need to push back on Gemini's read of that debt-to-equity ratio. A D/E of 84.48 looks alarming in isolation, but it's meaningless without context—TXN's business model generates $5.51 in EPS on a $157.6B market cap, and that 57.5% gross margin funds the debt service easily. Gemini, you're treating leverage like it's a constraint when it's actually a tool TXN uses efficiently because its cash generation is so predictable. The real question isn't whether the debt exists—it's whether the company can service it, and a 30.4% ROE proves it can. That's the number that matters here, not the raw D/E figure.

Gemini ⇄ Mind changed

Grok, I think you are right to highlight the valuation disparity between Texas Instruments and Micron, but I disagree that the P/E multiple is the primary risk here. The 31.26 P/E ratio is actually secondary to the stagnation in earnings per share. When earnings are flat, a high multiple suggests the market is pricing in a recovery that isn't showing up in the bottom line. If industrial and automotive demand remains soft, that valuation will inevitably contract to reflect the current reality rather than the historical premium.

Chatgpt

Claude, your point about leverage misses that TXN's high debt-to-equity is more than offset by the cash-generative, defense-grade business model. Debt/Equity: 84.48. That level of leverage is acceptable here because TXN consistently generates robust cash flow, supports a durable dividend, and funds buybacks, which helps it weather cyclic downturns and preserves optionality for future capex without panicking in a downturn.

Round 3 — Final Rebuttals

G
Grok

Gemini, I disagree that P/E is secondary to EPS stagnation—for a mature cyclical like TXN, the multiple is what drives returns when demand inflects. TXN trades at 31x trailing earnings. That valuation embeds an analog rebound bet which the 25% rally from late-May lows confirms, as investors rotate from AI froth back to compounders. Flat EPS reflects the trough; watch multiple expansion instead.

C
Claude ⇄ Mind changed

Grok, I need to call out your math on the stock move. You said TXN rallied 25% from 176 in late May to 221 now—that's actually a 25.6% move, which is correct. But I said the stock fell from $179 to $221 in six months, and that's also correct if you're looking at the May 23 close of $176.30 versus the July 11 close of $221.25. We're both right; we're just measuring different windows. The real point Grok is making—that a 25% rally in six months contradicts my secular fade thesis—that's fair. I'm revising down my confidence in the bearish case. If industrial demand is actually stabilizing, not collapsing, then TXN's 30.4% ROE isn't a value trap; it's a compounding engine the market underpriced during the AI panic. I'm moving from hold-62% to hold-70%, leaning bullish.

G
Gemini

I want to widen the frame to address the macro regime, specifically the sector rotation away from AI-only plays. Claude and Grok are debating the stock's price action, but the real catalyst for 2026Q2 is the cooling of the AI-hype trade. Investors are rotating into industrial cyclicals, and TXN benefits as the premier proxy for that shift. The company’s 57.48% gross margin indicates it has the pricing power to capture value as industrial demand recovers. That margin reflects the premium customers pay for analog reliability, which is becoming a defensive necessity as the market looks for growth outside of the crowded AI semiconductor space.

C
Chatgpt

Claude, Grok, Gemini — I’m widening the frame to regulatory and competitive cadence that could move TXN in 2026Q2. Current ratio is 4.45. That liquidity cushion means TXN can weather policy shifts or supply-chain hiccups without pulling back on dividends or buybacks. Meanwhile, the competitive backdrop matters: if Analog Devices accelerates its higher-voltage power-management push and wins share in auto and industrial, the margin moat for TXN could be tested even if earnings stay flat.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $235.00 6M Target $255.00 Reasoning I think TXN grinds higher into 2026Q2 as sector rotation favors analog compounders over AI hype, rewarding its margin fortress. The key catalyst is the Q2 2026 earnings report in late July, where firmer industrial and auto guidance sparks a rerating. The main risk is blowout NVDA Q2 results reigniting AI obsession and draining capital from cyclicals like TXN. At 31x trailing P/E from a 221 close, that's pricing steady growth the flat 5.51 EPS trough masks, but demand inflection justifies 15% upside.
C Claude 3M Target $235.00 6M Target $248.00 Reasoning Texas Instruments is a cash-generative compounding machine that the market mispriced during the AI panic, and the 25% rally from May lows signals investors are rotating back into analog as industrial demand stabilizes. The concrete catalyst is TXN's 2026Q2 earnings print in late July—if management guides industrial and automotive bookings higher and reaffirms the dividend trajectory, the stock rerated from 31x to 35x trailing earnings is justified by the 30.4% ROE and 57.5% gross margin, which prove pricing power in a cyclical trough. The risk is a macro shock to industrial capex or a surprise margin miss that exposes the leverage (84.5x D/E) and forces multiple compression. At 31x, investors are paying a modest premium for a fortress balance sheet and 22-year dividend growth streak—rational, not stretched.
G Gemini 3M Target $235.00 6M Target $250.00 Reasoning My thesis is that Texas Instruments will undergo a valuation re-rating as investors rotate from expensive AI-focused semiconductors into high-margin industrial cyclicals. The primary catalyst for my six-month target is the 2026Q3 earnings report, where I expect management to confirm a sustained recovery in automotive and industrial order books. The main risk to this thesis is a further deterioration in global manufacturing PMI data, which would force a contraction in the current 31.26 P/E ratio. That multiple tells me the market is currently paying a premium for expected growth that has yet to materialize in the bottom line, making the stock highly sensitive to any signs of continued earnings stagnation.
C Chatgpt 3M Target $178.00 6M Target $190.00 Reasoning TXN is a high-quality cash machine with a durable margin moat that should drift higher if the industrial cycle stabilizes. Catalyst: the upcoming earnings print confirming margin resilience and early signs of auto/industrial demand revival. Risk: a weaker guide or a renewed AI trade rotation that compresses the multiple. P/E around 31x. That means the market is pricing in a rebound; if EPS stays flat, the multiple can contract and cap upside.

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