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Headquartered in Dallas, Texas, Texas Instruments Incorporated (TXN) is a global semiconductor company with a market cap of $201 billion. TXN specializes in the design and manufacture of a diverse portfolio of analog and embedded processing chips, which power a wide range of electronic products across industries, including automotive, industrial, and consumer electronics.
Shares of Texas Instruments have outperformed the broader market over the past year. While TXN gained 46.7% over this time frame, the broader S&P 500 Index ($SPX) has returned nearly 35.9%. In 2024, TXN stock is up 26.6%, compared to the SPX is up 25.8% on a YTD basis.
Narrowing the focus, TXN underperformed compared to the VanEck Semiconductor ETF (SMH). The exchange-traded fund has gained about 45% on a YTD basis.
Texas Instruments has outperformed the broader market due to strong demand for its semiconductor products, particularly in the automotive and industrial sectors. TXN stock rose by over 4% on Nov. 6, joining the broader rally in chip stocks. This increase was part of a sector-wide gain.
Additionally, Texas Instruments’ shares gained 4% in the subsequent trading session after the company reported its Q3 results on Oct. 22. Its EPS amounted to $1.47, beating the consensus estimates of $1.36. The company’s revenue of $4.15 billion surpassed the Wall Street forecasts of $4.11 billion.
For the current fiscal year, ending in December, analysts expect Texas Instruments to report an EPS decline of 27.6% to $5.08 on a diluted basis. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 28 analysts covering TXN stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, 15 “Holds,” one “Moderate Sell,” and two “Strong Sells.”
This configuration is bullish than three months ago, when the consensus rating was “Hold.”
On Oct. 23, Truist has lowered its price target for Texas Instruments from $198 to $190 while maintaining a ‘Hold’ rating on the stock.
Although the stock trades at a premium to the mean price target of $212.40, the Street-high price target of $298 suggests an upside potential of 38%.
On the date of publication, Rashmi Kumari 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.
