TXN Should I Buy
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Texas Instruments (TXN) is not a strong buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. While the company has shown some positive trends in revenue growth and analyst upgrades, the lack of strong proprietary trading signals, insider selling, cautious congressional trading activity, and declining profitability metrics suggest a 'hold' recommendation at this time.
The technical indicators are mixed to slightly positive. The MACD is above 0 and positively contracting, indicating a mild bullish trend. RSI is neutral at 61.216, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near a key pivot level of 222.237 with resistance at 229.214 and support at 215.26. However, the stock's recent price change (+0.25%) and pre-market decline (-0.52%) suggest limited momentum.
Analysts have raised price targets, with several maintaining Outperform or Buy ratings. The highest price target is $260, indicating potential upside.
The company reported a 10.38% YoY revenue increase in Q4 2025, driven by strength in data centers and industrial segments.
Positive guidance for Q1 2026, marking the first sequential Q1 growth in over 20 years.
Insiders are selling heavily, with a 1439.88% increase in selling activity over the last month.
Congress members have sold TXN shares recently, indicating caution.
Net income, EPS, and gross margin declined YoY in Q4 2025, reflecting profitability pressures.
Some analysts maintain Sell or Underperform ratings, citing valuation concerns and slower recovery compared to peers.
In Q4 2025, revenue grew by 10.38% YoY to $4.423 billion, but net income dropped by -3.59% YoY to $1.156 billion. EPS declined by -2.31% YoY to $1.27, and gross margin fell by -3.22% YoY to 55.89%. While revenue growth is strong, declining profitability metrics raise concerns about operational efficiency.
Analysts are generally positive, with multiple firms raising price targets. The highest target is $260 (UBS), and the lowest is $160 (Mizuho). Outperform and Buy ratings dominate, but some analysts express concerns about valuation and slower recovery compared to peers.
