Texas Instruments Q4 Results Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Data Center Growth: Texas Instruments reported $450 million in revenue for Q4 2025, reflecting a 64% year-over-year increase, indicating that the data center buildout is positively impacting the company's performance and is expected to enhance market share further.
- Market Segmentation: Texas Instruments is now categorizing data centers as a distinct market, with Compute, Networking, and Power Delivery accounting for 45%, 35%, and 20% respectively, which will help the company better track hyperscaler capital expenditures.
- Analyst Rating Changes: Bank of America upgraded Texas Instruments from Underperform to Neutral and raised its price target from $185 to $235, reflecting a more optimistic outlook on the company's future prospects.
- Industry Outlook: While Morgan Stanley maintains an Underweight rating on Texas Instruments, it anticipates that growth in the coming quarters will be sustainable, indicating market confidence in the recovery of analog products.
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Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TXN is 193.53 USD with a low forecast of 125.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 216.170
Low
125.00
Averages
193.53
High
245.00
Current: 216.170
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.
Texas Instruments Stock Rises as Analysts Raise Price Targets
- Quarterly Performance: Texas Instruments reported fourth-quarter revenue of $4.42 billion, slightly below the expected $4.44 billion but reflecting a 10% year-over-year increase, which alleviates investor concerns about demand stability.
- Guidance Outlook: The company projected first-quarter revenue between $4.32 billion and $4.68 billion, exceeding market expectations of $4.42 billion, indicating management's increased confidence in future demand, potentially driving further stock price gains.
- Analyst Rating Upgrades: Analysts from Cantor Fitzgerald, Benchmark, and Rosenblatt raised Texas Instruments' price targets, with the highest increase from $190 to $250, reflecting optimistic market sentiment regarding the company's growth potential.
- Signs of Industry Recovery: Analysts highlighted a rebound in demand from industrial and data center sectors, particularly noting a 70% year-over-year growth in data center revenue, which is expected to support sustained growth for the company in the coming quarters and strengthen its market position.
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