Fundamentals snapshot
TXN · NMS · Technology · Semiconductors
Current price
$290.90
52-week range
$152.73 - $331.51
Market cap
$264.75B
One-glance verdict
Fair-value range $62.45 – $155.56 (cautious → optimistic — tap the ? for the math)
Wall Street consensus: $290.33 (238.1% higher than our fair-value estimate)
Buy below $68.70 for a 20% safety cushion
Balance sheet
Net debt $8.95B. Interest coverage shows how many times profit covers the interest bill.
What stands out
Quick scan of the biggest positives and negatives from the detailed checklist below.
What this company does
Texas Instruments makes essential electronic components, often called chips, that are the fundamental building blocks inside everything from cars to factory equipment. The company focuses on the industrial and automotive markets, which is important because these customers tend to buy products for many years, creating a stable and predictable business. This widespread use in long-lasting products means Texas Instruments isn't overly dependent on the short-term trends of consumer electronics like smartphones.
Texas Instruments started in 1930 as a company helping to find oil, but shifted to electronics during World War II. A major turning point came in 1958 when a TI engineer, Jack Kilby, invented the integrated circuit, a tiny chip holding many electronic components, which became the foundation for modern electronics. This invention led them to create the first handheld calculator in 1967 and the first single-chip microcontroller (a tiny computer on a chip) in 1970. Over the years, the company focused more on these tiny electronic components, selling off other parts of its business, like its defense division, to become the specialized chipmaker it is today.
Texas Instruments makes tiny electronic components called semiconductors, or chips, which are the essential building blocks inside almost every electronic device. You can't buy these chips in a store, but they are inside the products you use every day, from cars and factory robots to smartphones and medical equipment. These chips perform critical tasks like managing power, sensing things in the real world like temperature or sound, and acting as the 'brains' of a device. The company sells over 80,000 different types of these products to more than 100,000 customers who design and build electronics.
This is the company's largest business, making up more than three-quarters of its revenue. Analog chips are special because they work with real-world signals like sound, pressure, or temperature, and convert them into digital data that electronic devices can understand. They also manage power within a device, whether it's plugged into a wall or running on a battery. Companies that build everything from electric vehicles and factory equipment to personal gadgets buy these chips to handle power and connect their products to the physical world.
This segment, which accounts for a smaller portion of revenue, essentially creates the digital 'brains' for electronic devices. These are not the super-powerful processors you'd find in a laptop, but rather specialized chips called microcontrollers and processors designed to handle one or a few specific tasks very efficiently. For example, a chip in a smart thermostat that reads the temperature and turns on the air conditioning is an embedded processor. Because customers build their own software to run on these chips, they tend to stick with TI for a long time, creating a stable business.
This smaller part of the company includes well-known products like the graphing calculators used in schools. It also includes DLP® products, which are tiny chips with microscopic mirrors used inside projectors to create high-definition images for movie theaters and conference rooms. While these businesses are profitable, the company invests very little in them, as its main focus is on the much larger Analog and Embedded Processing markets.
The company's main focus is on growing its sales to the industrial and automotive markets, which are seen as long-term growth areas for things like factory automation and electric vehicles. To support this, Texas Instruments is spending billions to build more of its own factories in the U.S. to have greater control over its supply chain (the process of making and delivering products). By manufacturing more chips in-house, especially on larger, more efficient silicon wafers, they aim to lower costs and provide a more reliable supply to their customers. They are also focused on selling directly to customers through their website, which helps them build stronger relationships and understand what engineers need for their new designs.
Price history
Earnings history
Click any quarter to read the call summary and what the numbers say.
Is it cheap or expensive?
Wall Street consensus is the average analyst price target: $290.33 (238.1% higher than our fair-value estimate).
Buy below $68.70 for a 20% safety cushion. That means buying at least 20% below our fair value, as a buffer in case our estimate turns out too rosy.
Our most-likely fair value is $85.88 a share — about 70.5% below today's price of $290.90, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Net debt $8.9B. Interest coverage 11.3x.
Texas Instruments Incorporated's profit covers its interest bill about 11.3 times over. which is stronger than every peer shown here.
Total debt $14.05B Interest coverage 11.31x This is the baseline the peer rows are being compared against.
Total debt $8.71B Interest coverage 9.45x -16% vs TXN Carries about 1.2x less debt cushion than TXN.
Total debt $9.57B Interest coverage 8.80x -22% vs TXN Carries about 1.3x less debt cushion than TXN.
What you should know
The numbers
Tap any ? icon to learn what it means.
Valuation
Profitability
Health
Growth
Cash flow
Dividend
Metric explainer
Debt comparison
What you should know