Texas Instruments (TXN) stock got a slight boost on Wednesday after the semiconductor company announced plans to expand U.S. production. The calculator maker has promised to invest $60 billion in U.S. manufacturing that will be used to expand or build seven facilities.
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Texas Instruments’ interest in expanding its U.S. footprint isn’t a decision it reached without encouragement. President Donald Trump has pushed for manufacturing to return to the U.S. To achieve this goal, the President has put tariffs in place that affect imports from many countries.
Texas Instruments is among the semiconductor companies that already handle most of its manufacturing in the U.S. However, the company’s supply chain relies on businesses overseas, including those in Taiwan, India, and Singapore. It didn’t provide a timeline for when it would invest the $60 billion to enhance its U.S. operations.
TXN Analyst Coverage and Stock Movement
Recent analyst coverage of TXN stock has been mixed. Five-star Wells Fargo analyst Joseph Quatrochi reiterated a Hold rating, but increased his price target to $190 from $164, suggesting a possible 4.47% downside for the shares. He assigned this rating and price target to TX stock after comparing U.S. semiconductor companies to their Chinese rivals.
Despite that slightly bearish stance, Texas Instruments stock has performed well, with a 0.6% rally today and a 7.11% increase year-to-date. Its year-over-year performance is less stunning, with only a 2.56% gain.
Is Texas Instruments Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Texas Instruments is Moderate Buy, based on 10 Buy, 10 Hold, and three Sell ratings over the past three months. With that comes an average TXN stock price target of $185.95, representing a potential 6.5% upside for the shares.
