Texas Instruments (TXN) has shown some interesting movement in recent trading sessions, with the stock registering a steady gain of 2% over the past week. Investors are paying close attention to the company’s performance as it navigates ongoing sector shifts and broader market volatility.
See our latest analysis for Texas Instruments.
Texas Instruments’ 1-day share price return of 1.77% and a 7-day rally of 5.56% come as the stock bounces off a tough year, with overall total shareholder return still down 13.6% over the past twelve months. While recent momentum suggests optimism may be building around its ability to manage sector headwinds, longer-term performance has been more muted compared to industry leaders.
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With shares still below analyst price targets and modest annual growth figures, the question for investors is clear: is Texas Instruments currently trading at a discount, or are expectations for a rebound already fully reflected in the price?
Texas Instruments’ narrative-driven fair value estimate stands at $189.56, putting it about 11% above the last close price of $168.27. This divergence points to moderate analyst optimism about the path forward for the company, with a focus on future earnings recovery and margin expansion.
Strategic investment in U.S.-based 300mm wafer fabs and a diversified global manufacturing footprint uniquely position TI to benefit from evolving supply chain localization and customer preferences for geopolitically resilient suppliers. This advantage is likely to help win incremental business, strengthen preferred supplier status, and improve long-term gross margins and pricing power.
Read the complete narrative.
Curious which bold growth levers and projected profit surges sit beneath this bullish narrative? The secret sauce lies in aggressive margin targets, share reductions, and an industry-beating rebound analysts are daring to bake in. Unlock the full story to see how these forecasts stack up and what could challenge them.
Result: Fair Value of $189.56 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, renewed margin pressure from underutilized fabs or unexpected supply chain disruptions could quickly dampen optimism and challenge the current fair value case.
Find out about the key risks to this Texas Instruments narrative.
While the narrative-driven fair value sees Texas Instruments as undervalued, our DCF model presents a more conservative take. In this approach, the current share price of $168.27 is above the estimated fair value of $150.90, which implies potential downside risk. Which scenario will play out as sector trends shift?