Texas Instruments (TXN) has been on a strong run lately. Shares are up nearly 47% over the past three months and have gained almost 20% year-to-date, handily beating both the S&P 500 (SPY) and even Nvidia (NVDA) over the same stretch. At $221.25, the stock is trading near its 52-week high, but Wall Street remains divided on whether there is more upside ahead. Nonetheless, Goldman Sachs, Citi, and KeyBanc all issued Buy ratings in the last week.
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Analysts Split as Texas Instruments Rallies Toward Recovery
TD Cowen stands out on the bullish side. Four-star Analyst Joshua Buchalter upgraded TXN stock to Buy from Hold and raised his price target to $245 from $200. That suggests about 11% upside. He sees early signs that industrial semiconductor de-stocking is nearing an end and believes Texas Instruments is well-positioned to benefit from a recovery. The company’s U.S.-based 300mm fabs, streamlined product portfolio, and high utilization rates give it operating leverage as demand improves. Buchalter expects capital spending to reach $2.5 billion next year and believes free cash flow per share could more than double by 2026.
Despite those positives, others are staying on the sidelines. Many analysts still view TXN as fairly valued, with tariff uncertainty and slowing macro trends in focus. Hedge funds reduced their holdings by 1.9 million shares last quarter, and insider transactions show more selling than buying over the past three months.
Even so, the fundamentals remain solid. Return on equity is 29.04% over the trailing 12 months, and the dividend yield is 2.48%. Momentum is also strong, with a 13.87% gain over the past year and technical indicators showing a positive trend. With earnings coming up on July 22, the next update may shape how long this rally can last. For now, TXN sits at the intersection of cautious optimism and improving chip industry signals. Whether that’s enough to drive the next leg higher remains to be seen.
Is TXN a Good Stock to Buy?
Out of 26 analysts who updated their price targets over the past three months, 13 have a Buy rating, 10 recommend Hold, and 3 rate the stock Sell, culminating in a Moderate Buy consensus. The average 12-month TXN stock price target sits at $198.27, implying a 10% downside from current levels.
