Key Stats for TXN Stock
- Year-to-Date Performance: 17%
- 52-Week Range: $140 to $231
- Valuation Model Target Price: $324
- Implied Upside: 60%
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What Happened?
Texas Instruments stock is up about 17% year to date, recently trading near $203 per share, as investors responded to improving semiconductor demand trends and updates from the company’s 2026 Capital Management call, which highlighted strong cash generation and long-term growth opportunities across key markets.
Part of the rally reflects renewed institutional accumulation and repositioning in the stock, signaling continued investor interest in Texas Instruments’ long-term earnings outlook.
Regents Gate Capital opened a new stake worth about $7.03 million, while American Century Companies increased its position by 8.8% to 765,539 shares, and Kingsview Wealth Management raised its holdings by 9.9% to 277,713 shares.
At the same time, several firms reduced exposure, including Laurel Wealth Advisors, which cut its stake by 99.5%, Erste Asset Management, which trimmed its position by 82.1%, and Rafferty Asset Management, which reduced its holdings by 25.6%, highlighting mixed but active institutional positioning.
This week, Texas Instruments also highlighted strong financial performance during its 2026 Capital Management call, reporting 2025 operating cash flow of $7.2 billion, up 13%, and free cash flow of $3.23 per share, up 97% year over year, while returning about $6.5 billion to shareholders.
CFO Rafael Lizardi said the company is “on track to deliver more than $8 per share of free cash flow in 2026.”
Management also emphasized that industrial, automotive, and data center markets represented about 75% of revenue in 2025, reinforcing the company’s exposure to some of the fastest-growing semiconductor end markets.
Texas Instruments continues investing in domestic semiconductor manufacturing capacity and expects to close its Silicon Labs acquisition in the first half of 2027, while institutional investors currently own about 84.99% of the company.
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Is TXN Undervalued?
Under valuation assumptions, the stock is modeled using:
- Revenue Growth (CAGR): 10.9%
- Operating Margins: 39.2%
- Exit P/E Multiple: 30.2x
Texas Instruments generates most of its revenue from analog semiconductors used in industrial equipment, automotive electronics, and embedded systems, which typically have long product lifecycles and stable demand once customer inventories normalize.
Industrial demand remains the company’s largest end market, and growth in factory automation, electrification, and sensing technologies could support higher semiconductor content across many types of equipment over time.
Automotive semiconductors are another major growth driver as vehicles continue adding power management chips, sensors, and connectivity components required for electric and software-defined vehicles.
Texas Instruments also benefits from its strategy of owning and operating its semiconductor manufacturing facilities, which helps control supply, maintain margins, and support long-term cost advantages as production increasingly shifts to 300-millimeter wafers.
Based on these inputs, the model estimates a target price of $324, implying about 60% total upside, suggesting the stock appears undervalued if industrial demand continues recovering and semiconductor content per system keeps expanding.
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How Much Upside Does TXN Stock Have From Here?
Investors can estimate Texas Instruments potential share price, or what any stock could be worth, in under a minute using TIKR’s New Valuation Model tool.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
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