Texas Instruments: Transitioning as an Analog Chip Giant
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
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Should l Buy TXN?
Source: Fool
- Data Center Sales Surge: Texas Instruments reported a 70% year-over-year increase in sales to data centers, highlighting the critical role of its analog chips in AI servers, which enhances the company's competitive position in the rapidly evolving data processing market.
- Stable Dividend Policy: The company has raised its dividend for 22 consecutive years, with a 4% increase in 2025, resulting in a current dividend yield of 2.9%, reflecting its financial stability and commitment to shareholders, thus attracting long-term investors.
- New Factory Launch: Texas Instruments' 300mm semiconductor fabrication facility in Texas commenced production in December, focusing on mature process chips, aimed at reducing reliance on external foundries to ensure stable high-volume production for decades ahead.
- Robust Financial Performance: In 2025, the company achieved $17.7 billion in revenue, a 13% increase, while earnings per share rose by 4.8% to $5.45, demonstrating its ability to maintain strong cash flow and profitability even as capital expenditures decrease.
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Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 196.300
Low
125.00
Averages
193.53
High
245.00
Current: 196.300
Low
125.00
Averages
193.53
High
245.00
About TXN
Texas Instruments Incorporated is engaged in the design and manufacture of semiconductors. The Company operates through two segments, which include Analog and Embedded Processing. Its Analog segment semiconductors are used to manage power in all electronic equipment by converting, distributing, storing, discharging, isolating, and measuring electrical energy. It consists of two products, which include Power and Signal Chain. The Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Signal Chain products include amplifiers, data converters, interface products, motor drives, clocks, logic, and sensing products. Its portfolio is designed to manage power requirements across different voltage levels. The Embedded Processing segment products are designed to handle specific tasks and can be optimized for various combinations of performance, power, and cost, depending on the application.
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: Transitioning as an Analog Chip Giant
- Data Center Sales Surge: Texas Instruments reported a 70% year-over-year increase in sales to data centers, highlighting the critical role of its analog chips in AI servers, which enhances the company's competitive position in the rapidly evolving data processing market.
- Stable Dividend Policy: The company has raised its dividend for 22 consecutive years, with a 4% increase in 2025, resulting in a current dividend yield of 2.9%, reflecting its financial stability and commitment to shareholders, thus attracting long-term investors.
- New Factory Launch: Texas Instruments' 300mm semiconductor fabrication facility in Texas commenced production in December, focusing on mature process chips, aimed at reducing reliance on external foundries to ensure stable high-volume production for decades ahead.
- Robust Financial Performance: In 2025, the company achieved $17.7 billion in revenue, a 13% increase, while earnings per share rose by 4.8% to $5.45, demonstrating its ability to maintain strong cash flow and profitability even as capital expenditures decrease.
See More
Texas Instruments Raises Dividend for 22 Consecutive Years
- Dividend Growth History: Texas Instruments has raised its dividend for 22 consecutive years, with a 4% increase in 2025, resulting in a current dividend yield of 2.9%, reflecting the company's strong performance in maintaining stable cash flow and shareholder returns.
- Data Center Sales Surge: The company's sales to data centers grew by 70% year-over-year, as noted by the CEO, indicating that the demand for high-performance power management and signal-chain chips for AI servers is solidifying Texas Instruments' core market position.
- Capex and Cash Flow: Despite capital expenditures reaching $4.7 billion in 2025, Texas Instruments has maintained predictable dividend increases, and with a slowdown in capex expected, cash flow is projected to rise, reaching $2.9 billion in 2025, a 96% increase from the previous year.
- Vertical Integration Advantage: Texas Instruments plans to produce 95% of its wafers internally by the end of the decade, leveraging the cost advantages of 300mm wafers to enhance production efficiency and reduce reliance on external foundries, thereby strengthening supply chain control.
See More
Texas Instruments: Steady Growth and Dividend Appeal
- Data Center Sales Surge: Texas Instruments reported a 70% year-over-year increase in sales to data centers, as CEO Haviv Ilan highlighted in the fourth-quarter earnings call, indicating the company's crucial role in the AI wave due to the demand for high-performance power management and signal-chain chips.
- Robust Dividend History: The company has raised its dividend for 22 consecutive years, with a 4% increase in 2025, and a current dividend yield of 2.9%, reflecting a remarkable 273% increase over the past decade, showcasing its strong cash flow and commitment to shareholder returns.
- New Factory Launch: Texas Instruments' $30 billion investment in a 300mm semiconductor fabrication facility in Sherman Oaks, Texas, began production in December 2025, focusing on mature process chips to reduce reliance on external foundries and ensure stable production for decades.
- Consistent Financial Performance: In 2025, Texas Instruments achieved $17.7 billion in revenue, a 13% increase, while earnings per share (EPS) rose 4.8% to $5.45, demonstrating the company's ability to maintain solid financial growth even as capital expenditures decrease.
See More
Texas Instruments to Host Q1 Earnings Call
- Earnings Call Schedule: Texas Instruments is set to host its Q1 earnings conference call on April 22, 2026, at 3:30 PM Central Time, where company executives will discuss financial results and address investor questions, aiming to enhance transparency and investor confidence.
- Executive Participation: The call will feature CEO Haviv Ilan, CFO Rafael Lizardi, and VP of Investor Relations Mike Beckman, ensuring that investors receive firsthand insights into the company's strategy and financial performance.
- Webcast Access: Investors can access the audio webcast through the Investor Relations section of Texas Instruments' website, facilitating real-time participation for global investors and improving interaction between the company and its stakeholders.
- Availability of Archive: An archived version of the webcast will be made available shortly after the call concludes, ensuring that investors who cannot attend live can still access the information, thereby enhancing the company's commitment to comprehensive and timely information disclosure.
See More
Texas Instruments to Host Q1 Earnings Call on April 22
- Earnings Call Schedule: Texas Instruments is set to host its first quarter earnings conference call on April 22, 2026, at 3:30 PM Central Time, aiming to enhance communication and transparency with investors by discussing financial performance and addressing audience questions.
- Executive Participation: The call will feature CEO Haviv Ilan, CFO Rafael Lizardi, and VP of Investor Relations Mike Beckman, ensuring that investors receive insights and future outlook directly from the company's leadership, which is crucial for informed investment decisions.
- Webcast Access: Investors can access the audio webcast through the Investor Relations section of Texas Instruments' website, facilitating real-time updates for global investors and improving the accessibility of critical company information.
- Replay Availability: An archived version of the webcast will be made available shortly after the call concludes, allowing investors who cannot attend live to review the content at their convenience, thereby enhancing information accessibility and transparency.
See More
Texas Instruments: Future Dividend King in the Making
- Dividend Appeal: Texas Instruments currently offers a 3% dividend yield, which is near the high end of its historical range, attracting long-term dividend investors and indicating the company's potential for stable returns.
- Sustained Growth: With a 22-year streak of annual dividend increases, Texas Instruments demonstrates a robust strategy in capital investments and future demand preparation, with a reasonable 4% dividend hike expected in 2025.
- Market Demand: Despite investor focus on AI chips, Texas Instruments saw a 70% year-over-year sales increase in Q4 2025 for data center support, underscoring its critical market position and relevance in the tech landscape.
- Digitalization Trend: As the digital transition accelerates, the demand for Texas Instruments' analog chips is expected to grow, with predictions of more dividend increases over the next 38 years, enhancing its potential as a future Dividend King.
See More
Texas Instruments: Transitioning as an Analog Chip Giant
- Data Center Sales Surge: Texas Instruments reported a 70% year-over-year increase in sales to data centers, highlighting the critical role of its analog chips in AI servers, which enhances the company's competitive position in the rapidly evolving data processing market.
- Stable Dividend Policy: The company has raised its dividend for 22 consecutive years, with a 4% increase in 2025, resulting in a current dividend yield of 2.9%, reflecting its financial stability and commitment to shareholders, thus attracting long-term investors.
- New Factory Launch: Texas Instruments' 300mm semiconductor fabrication facility in Texas commenced production in December, focusing on mature process chips, aimed at reducing reliance on external foundries to ensure stable high-volume production for decades ahead.
- Robust Financial Performance: In 2025, the company achieved $17.7 billion in revenue, a 13% increase, while earnings per share rose by 4.8% to $5.45, demonstrating its ability to maintain strong cash flow and profitability even as capital expenditures decrease.
See More
Texas Instruments Raises Dividend for 22 Consecutive Years
- Dividend Growth History: Texas Instruments has raised its dividend for 22 consecutive years, with a 4% increase in 2025, resulting in a current dividend yield of 2.9%, reflecting the company's strong performance in maintaining stable cash flow and shareholder returns.
- Data Center Sales Surge: The company's sales to data centers grew by 70% year-over-year, as noted by the CEO, indicating that the demand for high-performance power management and signal-chain chips for AI servers is solidifying Texas Instruments' core market position.
- Capex and Cash Flow: Despite capital expenditures reaching $4.7 billion in 2025, Texas Instruments has maintained predictable dividend increases, and with a slowdown in capex expected, cash flow is projected to rise, reaching $2.9 billion in 2025, a 96% increase from the previous year.
- Vertical Integration Advantage: Texas Instruments plans to produce 95% of its wafers internally by the end of the decade, leveraging the cost advantages of 300mm wafers to enhance production efficiency and reduce reliance on external foundries, thereby strengthening supply chain control.
See More
Texas Instruments: Steady Growth and Dividend Appeal
- Data Center Sales Surge: Texas Instruments reported a 70% year-over-year increase in sales to data centers, as CEO Haviv Ilan highlighted in the fourth-quarter earnings call, indicating the company's crucial role in the AI wave due to the demand for high-performance power management and signal-chain chips.
- Robust Dividend History: The company has raised its dividend for 22 consecutive years, with a 4% increase in 2025, and a current dividend yield of 2.9%, reflecting a remarkable 273% increase over the past decade, showcasing its strong cash flow and commitment to shareholder returns.
- New Factory Launch: Texas Instruments' $30 billion investment in a 300mm semiconductor fabrication facility in Sherman Oaks, Texas, began production in December 2025, focusing on mature process chips to reduce reliance on external foundries and ensure stable production for decades.
- Consistent Financial Performance: In 2025, Texas Instruments achieved $17.7 billion in revenue, a 13% increase, while earnings per share (EPS) rose 4.8% to $5.45, demonstrating the company's ability to maintain solid financial growth even as capital expenditures decrease.
See More
Texas Instruments to Host Q1 Earnings Call
- Earnings Call Schedule: Texas Instruments is set to host its Q1 earnings conference call on April 22, 2026, at 3:30 PM Central Time, where company executives will discuss financial results and address investor questions, aiming to enhance transparency and investor confidence.
- Executive Participation: The call will feature CEO Haviv Ilan, CFO Rafael Lizardi, and VP of Investor Relations Mike Beckman, ensuring that investors receive firsthand insights into the company's strategy and financial performance.
- Webcast Access: Investors can access the audio webcast through the Investor Relations section of Texas Instruments' website, facilitating real-time participation for global investors and improving interaction between the company and its stakeholders.
- Availability of Archive: An archived version of the webcast will be made available shortly after the call concludes, ensuring that investors who cannot attend live can still access the information, thereby enhancing the company's commitment to comprehensive and timely information disclosure.
See More
Texas Instruments to Host Q1 Earnings Call on April 22
- Earnings Call Schedule: Texas Instruments is set to host its first quarter earnings conference call on April 22, 2026, at 3:30 PM Central Time, aiming to enhance communication and transparency with investors by discussing financial performance and addressing audience questions.
- Executive Participation: The call will feature CEO Haviv Ilan, CFO Rafael Lizardi, and VP of Investor Relations Mike Beckman, ensuring that investors receive insights and future outlook directly from the company's leadership, which is crucial for informed investment decisions.
- Webcast Access: Investors can access the audio webcast through the Investor Relations section of Texas Instruments' website, facilitating real-time updates for global investors and improving the accessibility of critical company information.
- Replay Availability: An archived version of the webcast will be made available shortly after the call concludes, allowing investors who cannot attend live to review the content at their convenience, thereby enhancing information accessibility and transparency.
See More
Texas Instruments: Future Dividend King in the Making
- Dividend Appeal: Texas Instruments currently offers a 3% dividend yield, which is near the high end of its historical range, attracting long-term dividend investors and indicating the company's potential for stable returns.
- Sustained Growth: With a 22-year streak of annual dividend increases, Texas Instruments demonstrates a robust strategy in capital investments and future demand preparation, with a reasonable 4% dividend hike expected in 2025.
- Market Demand: Despite investor focus on AI chips, Texas Instruments saw a 70% year-over-year sales increase in Q4 2025 for data center support, underscoring its critical market position and relevance in the tech landscape.
- Digitalization Trend: As the digital transition accelerates, the demand for Texas Instruments' analog chips is expected to grow, with predictions of more dividend increases over the next 38 years, enhancing its potential as a future Dividend King.
See More
