Latest news with #TXN
CNBC
2 days ago
- Business
- CNBC
Wolfe Research upgrades Texas Instruments to outperform, sees cyclical recovery ahead
Wolfe Research is ready to jump back into Texas Instruments . The investment firm upgraded the semiconductor stock to an outperform rating from peer perform. Analyst Chris Caso accompanied the move by also establishing a price target of $230, implying an upside of 24% from the stock's Friday close. Shares of Texas Instruments are down 1% this year. Caso noted that Texas Instruments has "significantly underperformed" stock benchmarks since early 2022, when it introduced a multiyear capital expenditures expansion plan. TXN YTD mountain TXN YTD chart Now, however, the company is also nearing the end of its multiyear capital expenditures cycle. This could soon begin driving free cash flow and gross margin growth. "TXN's accelerated investment cycle is nearing an end — CapEx is expected to drop to $2-5bn in CY26 from $5bn/yr 2023-2025. Spending in CY27 will depend on expected revenue growth. We note that TXN's CapEx was accelerated in order to take advantage of US govt incentives (Chips Act grants and tax credits), which end in 2026," Caso wrote. "We anticipate that TXN's FCF of ~$2bn in CY24 (including $588mn cash benefit from ITC credit) will rise to > $9bn by CY27." Caso also expects the analog chip industry is on the cusp of a cyclical recovery, with Texas Instruments positioned to benefit. "Customers appear to have stopped cutting inventory, a signal in our view that the upcycle is likely to emerge in short order," the analyst added.
Yahoo
5 days ago
- Business
- Yahoo
Texas Instruments (TXN) Falls 13.3% on Weak Outlook
We recently published . Texas Instruments Inc. (NASDAQ:TXN) is one of the worst performers on Wednesday. Texas Instruments slashed its share prices by 13.34 percent on Wednesday to close at $186.25 apiece as investor sentiment was dampened by the company's softer outlook for the rest of the year amid weak demand. Following the release of its second quarter earnings performance, Texas Instruments Inc. (NASDAQ:TXN) said that it expects third quarter earnings per share to settle between $1.36 and $1.6, below analyst consensus. Revenue outlook, on the other hand, was pegged at $4.45 billion to $4.8 billion, in line with Wall Street expectations. In the second quarter of the year, net income increased by 15 percent to $1.295 billion from $1.127 billion, while revenues were higher by 16 percent to $4.448 billion from $3.822 billion year-on-year. Photo by Slejven Djurakovic on Unsplash Following the results, investment firm TD Cowen lowered its price target for the company by 6 percent to $230 from $245, but maintained a 'buy' recommendation for its stock. While we acknowledge the potential of TXN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
Yahoo
7 days ago
- Business
- Yahoo
Texas Instruments Issues Weak Earnings Outlook Despite Second-Quarter Beat
Texas Instruments (TXN) shares dropped early Wednesday as the semiconductor manufacturer issued a th Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 days ago
- Business
- Yahoo
Why Texas Instruments Plunged Double Digits Today
Key Points Texas Instruments beat analyst estimates in the second quarter. However, Q3 guidance was more conservative than optimists had anticipated. Still, analysts were mixed after results, with some actually raising their price targets even though the stock sold off. 10 stocks we like better than Texas Instruments › Shares of auto and industrial chip giant Texas Instruments (NASDAQ: TXN) plunged doubled digits on Wednesday, falling 13.3% as of 2:22 p.m. ET. That's a pretty big drop for what is considered a stable, blue chip company, especially after an earnings "beat" last night. However, the stock had rallied hard since April on optimism over a strong cyclical recovery in the industrial chip arena. We're talking a 50% gain between the stock's April lows and recent highs. Therefore, when the company guided for continued growth but perhaps not as much as some had hoped for in Q3, the lack of a "perfect" recovery sent the stock tumbling. Four out of five TI markets are accelerating their recovery In the second quarter, Texas Instruments reported 16.5% revenue growth to $4.45 billion, with earnings per share rallying 15.6% to $1.44. Both figures beat analyst expectations. However, the problem came in management's third-quarter guidance, in which the company forecasts $4.45 billion to $4.80 billion in revenue and $1.36 to $1.60 in EPS. While those figures would mark quarter-over-quarter growth, the stock had apparently been pricing in a swifter recovery. On the conference call with analysts, management elaborated that four out of the company's five main end markets were all recovering strongly, with industrial chips up in the high teens, personal electronics up 25%, enterprise chips up 40%, and communications equipment up more than 50% year over year. However, the company's auto chip segment -- its second-largest behind industrial chips -- only grew mid-single digits, and actually fell quarter over quarter. CFO Haviv Ilan made the point that autos had gone into its downturn in 2023, about a year later than industrial chips, and that the recovery there was shallower. Recent tariff announcements have also greatly affected the auto sector, throwing a wrench into a cyclical recovery. TI receives mixed reviews in the aftermath Sell-side analysts had a mixed reaction to TI's earnings report and guidance, with some raising their price targets and others lowering them. The most positive was Argus, which raised its price target on the stock from $210 to $250 relative to the stock's $187 stock price as of this writing. But DZ Bank slapped a $158 price target on the stock and a "sell" rating. TI's stock doesn't look particularly cheap on the surface at 34 times this year's earnings estimates, but TI is also making a big investment in U.S. manufacturing, which is elevating costs today. Still, that investment could prove to be a great advantage and asset over the long term. Therefore, investors in the stock should continue to hold, while those who don't own TI may want to investigate entering the newly discounted chip giant. Should you buy stock in Texas Instruments right now? Before you buy stock in Texas Instruments, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Texas Instruments wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $641,800!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,023,813!* Now, it's worth noting Stock Advisor's total average return is 1,034% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Billy Duberstein and/or his clients has positions in Texas Instruments. The Motley Fool has positions in and recommends Texas Instruments. The Motley Fool has a disclosure policy. Why Texas Instruments Plunged Double Digits Today was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Watch These Texas Instruments Price Levels as Stock Plunges on Weak Profit Outlook
Texas Instruments shares (TXN) tumbled Wednesday after the analog chipmaker well known for its calculators issued a light current-quarter profit outlook. The company, whose chips serve customers in most sectors across the economy, struck a more cautious tone than the previous quarter, telling analysts on the earnings call that the auto market remains subdued and the risks of new tariffs add demand uncertainty. Prior to Wednesday's decline, Texas Instruments shares had gained 15% since the start of the year, boosted by broad market optimism about chip demand and the company's plans to expand its U.S-based chipmaking factories. The stock was down 13% at around $186 in afternoon trading. Below, we take a closer look at the Texas Instruments chart and apply technical analysis to identify price levels worth watching out for. Shares Retraced Ahead of Earnings After plumbing a low in early April, Texas Instruments shares trended sharply higher before running into overhead selling pressure earlier this month near last November's peak. The price continued to retrace in recent weeks ahead of the company's quarterly results in a move that coincided with the relative strength index retreating below its overbought threshold. Let's identify important support levels to watch amid the potential for further earnings-related selling and also point out overhead areas worth monitoring during possible recovery efforts. Important Support Levels to Watch The first lower support level to watch sits around $190, just above where the stock was trading Wednesday afternoon. It's worth monitoring if bulls can defend the closely-followed 200-day moving average and a brief period of consolidation that formed on the chart just after the mid-May stock gap. A decisive breakdown below this level sets the stage for a drop to $172. Investors may look to accumulate shares in this area near the March trough and the high of a bullish wide-ranging day in early April. Overhead Areas Worth Monitoring During recovery efforts in the stock, investors should initially monitor the $206 area. The shares could meet significant selling pressure in this location near a multi-month horizontal line that connects a range of price action on the chart stretching from May last year to June this year. Finally, a breakout above this area could see Texas Instruments shares retest overhead resistance around $220. Investors may decide to lock in profits in this region near the notable November and July peaks, with the latter marking the stock's record high. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
