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With a market cap of $184.1 billion, Dallas, Texas-based Texas Instruments Incorporated (TXN) is a global semiconductor company that designs and manufactures analog, mixed signal, and digital signal processing integrated circuits. It operates through two main segments: Analog and Embedded Processing, serving a variety of industries worldwide.
Companies worth more than $10 billion are generally described as “large-cap” stocks, and Texas Instrument fits this criterion perfectly. Texas Instruments is renowned for its innovation in semiconductor technology, including pioneering the integrated circuit, advancing analog and embedded processing solutions, and dominating markets with high-margin products like DLP technology and graphing calculators.
Despite this, the company dipped 9.9% from its 52-week high of $220.38. Shares of this semiconductor manufacturer have declined 1.6% over the past three months, lagging behind the broader Dow Jones Industrials Average’s ($DOWI) 9.3% return over the same time frame.
In the longer term, TXN stock is up 16.5% on a YTD basis, underperforming DOWI’s 18.7% gains. But, shares of TXN have gained 27.9% over the past 52 weeks, outperforming DOWI’s 23.4% returns over the same time frame.
Texas Instruments has maintained a bullish trend since March, consistently trading above its 50-day and 200-day moving averages despite recent fluctuations.
Shares of Texas Instruments surged 4% following its Q3 earnings release on Oct. 22 due to its better-than-expected earnings of $1.47 per share and revenue of $4.2 billion, both beat estimates. The company's performance was bolstered by strong growth in key end markets like Personal Electronics and Communication Equipment, signaling a cyclical recovery. Additionally, the results came at the higher end of management's guidance, reinforcing investor confidence despite year-over-year declines in revenue and earnings.
TXN has outpaced its rival, QUALCOMM Incorporated (QCOM), which gained 25.7% over the past 52 weeks and 12.7% on a YTD basis.
Despite TXN’s outperformance relative to the broader market over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 29 analysts covering the stock, and as of writing, TXN is trading below the mean price target of $212.51.
