Texas Instruments Cuts 2026 Capital Spending Forecast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy TXN?
Source: seekingalpha
- Capital Spending Cut: Texas Instruments confirmed a reduction in capital spending for 2026 to between $2 billion and $3 billion, down from approximately $4.6 billion in 2025, indicating a cautious approach amid economic uncertainties that may impact technology development and market competitiveness.
- Long-term Objectives Unchanged: Despite the spending cut, Texas Instruments reiterated its long-term goal to support new technology development and revenue growth, demonstrating the company's commitment to maintaining its low-cost manufacturing advantage even under financial constraints.
- Inventory Days Target Update: The company updated its inventory days target to 150 to 250 days to ensure high levels of customer service across varying market conditions while minimizing inventory obsolescence, a strategy that enhances operational efficiency.
- Future Spending Dependent on Revenue: Texas Instruments stated that capital expenditures for 2027 and beyond will continue to depend on revenue and expected growth, reflecting the company's emphasis on financial flexibility in an uncertain market environment.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy TXN?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 219.860
Low
125.00
Averages
193.53
High
245.00
Current: 219.860
Low
125.00
Averages
193.53
High
245.00
About TXN
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets, such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, and others. Signal Chain includes products that sense, condition, and measure real-world signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs) and applications processors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
US Stocks Rebound Led by Software and Chipmakers
- Market Rebound: The S&P 500 index rose by 0.50%, the Dow Jones Industrial Average by 0.75%, and the Nasdaq 100 by 0.90%, indicating a gradual recovery after Monday's sharp declines, reflecting renewed investor confidence in economic prospects.
- Consumer Confidence Boost: The February consumer confidence index in the US increased by 2.2 to 91.2, surpassing expectations of 87.1, suggesting that rising consumer optimism could drive spending and positively impact economic growth.
- Strong Software Stock Recovery: Thomson Reuters shares surged by 12% after reaching one million professional users of its AI tool, indicating high market acceptance and potential for further revenue growth, enhancing its competitive position.
- Interest Rate Expectations Shift: The market is pricing in only a 3% chance of a 25 basis point rate cut at the Fed's March meeting, reflecting cautious investor sentiment regarding future monetary policy, which may influence short-term stock market volatility.
See More
Texas Instruments Cuts 2026 Capital Spending Forecast
- Capital Spending Cut: Texas Instruments confirmed a reduction in capital spending for 2026 to between $2 billion and $3 billion, down from approximately $4.6 billion in 2025, indicating a cautious approach amid economic uncertainties that may impact technology development and market competitiveness.
- Long-term Objectives Unchanged: Despite the spending cut, Texas Instruments reiterated its long-term goal to support new technology development and revenue growth, demonstrating the company's commitment to maintaining its low-cost manufacturing advantage even under financial constraints.
- Inventory Days Target Update: The company updated its inventory days target to 150 to 250 days to ensure high levels of customer service across varying market conditions while minimizing inventory obsolescence, a strategy that enhances operational efficiency.
- Future Spending Dependent on Revenue: Texas Instruments stated that capital expenditures for 2027 and beyond will continue to depend on revenue and expected growth, reflecting the company's emphasis on financial flexibility in an uncertain market environment.
See More
Three Industrial Chip Stocks Poised to Benefit from a New Semiconductor Supercycle in 2026
Market Dynamics: Industrial semiconductor makers are experiencing significant demand shifts, driven by inventory normalization in critical markets such as automotive, communications, and consumer electronics, alongside the growth of AI infrastructure.
Company Performance: Companies like Analog Devices and Onsemi are crucial players in the semiconductor industry, showing strong revenue growth and positive market sentiment, with expectations for continued performance improvements into 2026.
Stock Analysis: Analysts are bullish on semiconductor stocks, with many recommending purchases as market conditions improve, leading to increased price targets and a favorable outlook for growth in the sector.
Investment Recommendations: The article highlights five stocks that analysts believe are strong buys, suggesting that investors should act before broader market trends catch up, indicating a potential for significant returns.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, the overall trend suggests increased confidence from analysts in certain stocks, potentially attracting more investor interest.
- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
See More
Taiwan Semiconductor: A Leader in Global Semiconductor Innovation
- Global Investment Opportunities: While U.S. investors often focus on domestic companies, the rapid advancement of AI globally highlights the importance of overseas investment opportunities, particularly with Taiwan Semiconductor's pivotal role in the global semiconductor market.
- Founder's Background: Founder Morris Chang joined Texas Instruments in 1958 and, after a 25-year career, played a crucial role in semiconductor development, ultimately founding Taiwan Semiconductor in 1987, marking the rise of Taiwan's semiconductor industry.
- Business Model Innovation: Taiwan Semiconductor's pure-play foundry model allows multiple clients to design chips, enhancing production efficiency and gaining a competitive edge, enabling design companies to focus on innovation rather than manufacturing.
- Strong Financial Performance: With a current market cap of $1.9 trillion and a gross margin of 59.02%, Taiwan Semiconductor's profitability continues to grow, driven by long-term trends like digital transformation and AI, making it an attractive investment for investors.
See More
Citi Names Texas Instruments and Monolithic Power Systems as Top Picks
- Market Cycle Phase: Citi analyst Atif Malik noted that Texas Instruments (TXN) and Monolithic Power Systems (MPWR) have entered the 'Phase 2' of the cyclical framework, where stocks with product cycles or self-help stories are expected to outperform.
- Texas Instruments Outlook: As TXN approaches the end of its capital investment cycle, its gross margin is expected to expand further, with R&D investments focusing on the data center market, indicating strong growth potential.
- Monolithic Power Systems Growth: MPWR is expected to outpace industry growth, driven by enterprise data sales, with analyst projections indicating that data center-related sales will grow between 50% and 70% year-over-year in 2025, significantly exceeding the 6% growth of the analog and microcontroller industry.
- Future Projections: By 2026, revenue related to data centers and AI for analog companies is estimated to grow approximately 70% year-over-year, which could lead to multiple re-ratings for the sector as sales from the data center market are expected to exceed 25%.
See More
US Stocks Rebound Led by Software and Chipmakers
- Market Rebound: The S&P 500 index rose by 0.50%, the Dow Jones Industrial Average by 0.75%, and the Nasdaq 100 by 0.90%, indicating a gradual recovery after Monday's sharp declines, reflecting renewed investor confidence in economic prospects.
- Consumer Confidence Boost: The February consumer confidence index in the US increased by 2.2 to 91.2, surpassing expectations of 87.1, suggesting that rising consumer optimism could drive spending and positively impact economic growth.
- Strong Software Stock Recovery: Thomson Reuters shares surged by 12% after reaching one million professional users of its AI tool, indicating high market acceptance and potential for further revenue growth, enhancing its competitive position.
- Interest Rate Expectations Shift: The market is pricing in only a 3% chance of a 25 basis point rate cut at the Fed's March meeting, reflecting cautious investor sentiment regarding future monetary policy, which may influence short-term stock market volatility.
See More
Texas Instruments Cuts 2026 Capital Spending Forecast
- Capital Spending Cut: Texas Instruments confirmed a reduction in capital spending for 2026 to between $2 billion and $3 billion, down from approximately $4.6 billion in 2025, indicating a cautious approach amid economic uncertainties that may impact technology development and market competitiveness.
- Long-term Objectives Unchanged: Despite the spending cut, Texas Instruments reiterated its long-term goal to support new technology development and revenue growth, demonstrating the company's commitment to maintaining its low-cost manufacturing advantage even under financial constraints.
- Inventory Days Target Update: The company updated its inventory days target to 150 to 250 days to ensure high levels of customer service across varying market conditions while minimizing inventory obsolescence, a strategy that enhances operational efficiency.
- Future Spending Dependent on Revenue: Texas Instruments stated that capital expenditures for 2027 and beyond will continue to depend on revenue and expected growth, reflecting the company's emphasis on financial flexibility in an uncertain market environment.
See More
Three Industrial Chip Stocks Poised to Benefit from a New Semiconductor Supercycle in 2026
Market Dynamics: Industrial semiconductor makers are experiencing significant demand shifts, driven by inventory normalization in critical markets such as automotive, communications, and consumer electronics, alongside the growth of AI infrastructure.
Company Performance: Companies like Analog Devices and Onsemi are crucial players in the semiconductor industry, showing strong revenue growth and positive market sentiment, with expectations for continued performance improvements into 2026.
Stock Analysis: Analysts are bullish on semiconductor stocks, with many recommending purchases as market conditions improve, leading to increased price targets and a favorable outlook for growth in the sector.
Investment Recommendations: The article highlights five stocks that analysts believe are strong buys, suggesting that investors should act before broader market trends catch up, indicating a potential for significant returns.
See More
Wall Street Analysts Adjust Ratings
- Analyst Rating Changes: Top Wall Street analysts have adjusted their ratings on several companies, indicating a shift in market sentiment that could influence investor decisions and market trends.
- Upgrades and Downgrades: While specific upgrades and downgrades are not detailed, the overall trend suggests increased confidence from analysts in certain stocks, potentially attracting more investor interest.
- Market Reaction Expectations: Changes in analyst ratings often lead to market volatility, prompting investors to closely monitor these shifts to timely adjust their investment strategies and optimize their portfolios.
- Source of Information: A complete view of all analyst rating changes can be found on Benzinga's analyst ratings page, providing investors with comprehensive market insights and decision-making support.
See More
Taiwan Semiconductor: A Leader in Global Semiconductor Innovation
- Global Investment Opportunities: While U.S. investors often focus on domestic companies, the rapid advancement of AI globally highlights the importance of overseas investment opportunities, particularly with Taiwan Semiconductor's pivotal role in the global semiconductor market.
- Founder's Background: Founder Morris Chang joined Texas Instruments in 1958 and, after a 25-year career, played a crucial role in semiconductor development, ultimately founding Taiwan Semiconductor in 1987, marking the rise of Taiwan's semiconductor industry.
- Business Model Innovation: Taiwan Semiconductor's pure-play foundry model allows multiple clients to design chips, enhancing production efficiency and gaining a competitive edge, enabling design companies to focus on innovation rather than manufacturing.
- Strong Financial Performance: With a current market cap of $1.9 trillion and a gross margin of 59.02%, Taiwan Semiconductor's profitability continues to grow, driven by long-term trends like digital transformation and AI, making it an attractive investment for investors.
See More
Citi Names Texas Instruments and Monolithic Power Systems as Top Picks
- Market Cycle Phase: Citi analyst Atif Malik noted that Texas Instruments (TXN) and Monolithic Power Systems (MPWR) have entered the 'Phase 2' of the cyclical framework, where stocks with product cycles or self-help stories are expected to outperform.
- Texas Instruments Outlook: As TXN approaches the end of its capital investment cycle, its gross margin is expected to expand further, with R&D investments focusing on the data center market, indicating strong growth potential.
- Monolithic Power Systems Growth: MPWR is expected to outpace industry growth, driven by enterprise data sales, with analyst projections indicating that data center-related sales will grow between 50% and 70% year-over-year in 2025, significantly exceeding the 6% growth of the analog and microcontroller industry.
- Future Projections: By 2026, revenue related to data centers and AI for analog companies is estimated to grow approximately 70% year-over-year, which could lead to multiple re-ratings for the sector as sales from the data center market are expected to exceed 25%.
See More
