Texas Instruments comments at conference not surprising, says Wolfe Research

Wolfe Research notes that Texas Instruments (TXN) shares are trading down today following comments at a competitor conference, though the firm doesn’t think what they said is “new” and doesn’t consider either of the highlighted comments “surprising.” Consistent with what the company said on their earnings call, a recovery is underway in four of their five main markets, with auto the exception, but TI said its not the snapback that they’ve seen in prior recoveries, noted the analyst. TI also said that if they are at the lower end of their previously discussed calendar year 2026 revenue framework that they would have to manage wafer starts down to keep inventory flat or to drain it, which signals a headwind for calendar 2026 gross margins and is “a bit new (but not surprising),” the analyst tells investors. Wolfe keeps an Outperform rating and $230 price target on the shares.