Texas Instruments - AI Stock Analysis

Analysis generated November 2, 2025

Texas Instruments (TI) is a global leader in designing and manufacturing semiconductors and various integrated circuits, which it sells to electronics designers and manufacturers globally. The company is headquartered in Dallas, Texas, and has been a significant player in the semiconductor industry for decades. TI's product portfolio includes analog electronics, embedded processors, and digital light processing (DLP) technologies. The company's chips are integral to various industries, including automotive, industrial, personal electronics, communications, enterprise systems, and multiple other sectors.

Fundamental Analysis

Texas Instruments reported revenue of $4.74 billion for the last quarter. This represents a 6.61% increase compared to the previous quarter, signaling consistent growth. On a year-over-year basis, the revenue increased by 14.24%. Such growth rates indicate robust demand for TI's products and successful business operations.

The net income for the last quarter stood at $1.36 billion, reflecting a 5.33% increase compared to the last quarter and a marginal 0.15% increase year-over-year. This slight increase year-over-year suggests that while the company remains profitable, rising costs or other financial factors may be squeezing profit margins slightly.

EBITDA for the last quarter was reported at $2.38 billion, showing a 13.91% increase from the previous quarter and a 14.18% increase year-over-year. The strong EBITDA growth indicates that TI is effective at generating earnings before accounting for interest, taxes, depreciation, and amortization, which is a positive indicator of operational performance.

However, TI's current Price to Earnings (P/E) ratio is 31.54. This relatively high P/E ratio might suggest an overvaluation, often perceived with a bearish outlook. Therefore, potential investors should be cautious and consider whether the company's future growth prospects justify this valuation.

Technical Analysis

Today's stock price of Texas Instruments is $161.46. This price represents a 10.66% decline compared to a month ago, which may concern short-term investors. Furthermore, a year-over-year decrease of 18.64% raises red flags for long-term investors.

Technical indicators also highlight bearish trends. The current Simple Moving Average (SMA10) is $163.87, which is lower than the previous SMA10 of $164.79. This suggests a potential downward trend in price movement. Additionally, the Relative Strength Index (RSI) of 45.3 indicates a neutral condition, neither overbought nor oversold, meaning the stock could move in either direction in the short term.

Alternative Data Analysis

From an alternative data perspective, Texas Instruments seems to be positioning itself for growth. The company has 373 open positions, a 34% increase over the last couple of months, indicating expansion. Despite the neutral business outlook from employees, the hiring trend could signal optimistic internal expectations for future growth.

Regarding customer engagement and acquisition, TI's website has seen a visitor increase of 19% in the last couple of months, with an estimated 5 million visitors. This bullish trend could translate into a growing customer base. Also, Texas Instruments' social media presence is flourishing with a 5% increase in Instagram followers, reaching 47,000 followers. However, Twitter followers remain steady at 99,000, showing no significant change.

Finally, an AI score provided by AltIndex, which combines fundamental, technical, and alternative data, rates Texas Instruments at 54. This score is interpreted as a 'hold' signal, suggesting caution and a balanced approach to investment in TI's stock.

Conclusion

In conclusion, Texas Instruments presents a mixed investment opportunity. The company demonstrates strong fundamental growth with increasing revenue, net income, and EBITDA. However, the relatively high P/E ratio indicates a potentially overvalued stock. Technical analysis reveals a bearish trend, with significant recent price declines. Nonetheless, alternative data such as increased job postings and rising customer engagement paint a picture of a company preparing for future growth.

Investors should carefully weigh the expected growth against the current valuation and market conditions. A balanced approach may be prudent, with an eye on future earnings reports and additional market analysis to ensure informed decision-making. The current assessment suggests a 'hold' signal for Texas Instruments stock.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.