TXN
Texas Instruments Incorporated Y
Valuation
Opportunity Score
S-SHOCK-UPSTREAM Critical Mineral Supply Chain Concentration
V-WIDE-MOAT Wide Moat
Overview
Texas Instruments is a global semiconductor designer and manufacturer specializing in analog and embedded processing chips. The company serves diverse end markets including industrial, automotive, and personal electronics through a massive, vertically integrated manufacturing footprint.
Investment Thesis
Although Texas Instruments is contending with a 6.7% sequential revenue contraction and bearish insider sentiment totaling $28.3 million in sales, the company is attempting to pivot toward high-margin AI infrastructure. The investment thesis hinges on an anticipated acceleration in EPS growth, which is projected to climb from 6.6% in the current quarter to 19.7% next year. This transition is supported by a stable 55.9% gross margin, yet the company must overcome an inconsistent earnings track record and significant supply chain concentration risks involving critical minerals to validate its current valuation.
🕵️ Insider Radar
| Date | Insider | Type | Value |
|---|---|---|---|
| 2026-02-18 | Sell | 1.5M | |
| 2026-02-12 | Sell | 1.5M | |
| 2026-02-12 | Sell | 2.3M | |
| 2026-02-12 | Sell | 3M | |
| 2026-02-12 | Sell | 9.7M |
🔭 Quarterly Summary
Texas Instruments (TXN) reported a year-over-year revenue growth of 10.4%, though it faced a sequential revenue contraction of 6.7%. The company maintained a gross margin of 55.9% and a trailing twelve-month free cash flow (FCF) margin of 14.7%. Performance reflects a transition period with mixed signals across its analog and embedded processing segments, as evidenced by the divergence between annual growth and quarterly deceleration.