Should I buy Texas Instruments stock in 2025?

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At HelloSafe, our expert has been monitoring the performance of Texas Instruments for over three years. Each month, hundreds of thousands of users in the United States trust us to analyze market trends and uncover the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and will never be, paid or compensated by Texas Instruments.

What is Texas Instruments?

How much is Texas Instruments stock?

The price of Texas Instruments stock is falling this week. As of now, TXN trades at $158.26, down 1.12% over the past 24 hours and 2.82% for the week. The company holds a market capitalization of $143.77 billion, with an average three-month trading volume of 7.87 million shares.

While the stock is currently experiencing downward pressure, its moderate volatility and consistent dividends continue to attract attention from income-focused investors.

Our full analysis on Texas Instruments stock

Following a detailed review of Texas Instruments' latest financial statements and a rigorous evaluation of the stock’s performance over the last three years, our analysis leverages proprietary algorithms to synthesize financial metrics, technical signals, market data, and competitive positioning. Recent quarterly results, robust dividend history, and sector dynamics all converge to form a compelling picture. So, why might Texas Instruments stock once again become a strategic entry point into the semiconductor sector in 2025?

Recent Performance and Market Context

Texas Instruments (NASDAQ: TXN) is currently trading at $158.26 as of May 2, 2025, with a market capitalization of $143.77 billion. The stock has weathered a challenging twelve months, evidenced by a 1-year decline of 9.67% and a steeper year-to-date drop of 15.6%. After peaking at $220.39 in the preceding 52 weeks, shares have recently consolidated near their low, presenting a notable dislocation between short-term sentiment and long-term fundamentals.

Several positive events merit close attention. Q1 2025 results highlighted an 11% year-over-year revenue increase, outperforming consensus expectations in a period of cyclical trough for the chip sector. The analog segment, which forms the backbone of TI’s business, contributed $3.21 billion in revenue (up 13% YoY), signaling effective execution in high-margin markets. The company’s robust dividend growth—21 consecutive years of increases and a current yield of 3.44%—further elevates its appeal, especially when juxtaposed with the historically modest yields of technology peers.

From a sector perspective, the macroeconomic backdrop is gradually shifting in favor of semiconductors. Accelerating digitalization, electric vehicle proliferation, and industrial automation are driving up chip demand, while the U.S. CHIPS Act continues to catalyze domestic investment and capacity expansion, benefiting leading players such as Texas Instruments. In this context, the recent underperformance may be setting the stage for a mean-reversion opportunity.

Technical Analysis

Technical indicators for TXN currently reflect mixed-to-cautious short-term signals, yet underlying structures suggest the onset of stabilization—or even the early formation of a base.

• Moving Averages: The stock remains below its 5-, 10-, 20-, 50-, and 200-day moving averages (all generating sell signals), with the exception of the 100-day MA ($153.75), which offers a tentative buy signal. This juxtaposition is typical near cyclical inflections.
• Momentum Indicators: The Relative Strength Index (RSI-14) stands at 45.80, indicating the stock is neither overbought nor oversold, and thus avoiding a crowded trade setup. The MACD (0.17) and Stochastic Oscillator (55.75) favor a modest bullish bias, suggesting waning selling pressure and the potential for reversal.
• Support and Resistance: Key support remains solid at $158.06 (recent low) and more robust at $139.95 (52-week low), while immediate resistance at $162.07 is supplemented by a consensus analyst target of $177.41—implying a 12.1% upside.
• Momentum Structure: Recent price action appears to be forming a higher-low pattern above major support, historically a precursor to bullish reversals, especially when coinciding with positive earnings trends.

These technical dynamics, combined with sector tailwinds, point toward a favorable risk/reward setup for medium-term investors.

Fundamental Analysis

Texas Instruments’ fundamental profile continues to justify renewed investor interest, despite current market headwinds.

• Revenue and Profit Growth: Q1 2025 revenue reached $4.07 billion (+11% YoY), net income rose 7% to $1.18 billion, and EPS climbed to $1.28. Particularly noteworthy is the analog segment’s 20% growth in operating profit, underscoring management’s success in high-value applications.
• Attractive Valuation: With a trailing P/E of 29.92 and a forward P/E of 29.15, TXN trades at a premium to some peers, yet the 5-year PEG ratio of 1.70 signals that the valuation is not excessive relative to growth prospects—especially factoring in the company’s consistency and market share dominance. Price/sales (9.06) and price/book (8.76) are in line with the company’s premium brand positioning and capital efficiency.
• Dividend Appeal: The forward annual dividend of $5.44 (3.44% yield), supported by a 23% CAGR over two decades, solidifies TXN as a premier technology dividend play.
• Strategic Initiatives: Continued investment in 300mm wafer technology and vertical integration enhances manufacturing efficiency and margins, while participation in the automotive and industrial domains diversifies revenue streams and lengthens product cycles.
• Cash Returns: TXN returned $6.43 billion to shareholders over the past year (dividends and buybacks), a clear sign of healthy capital allocation discipline.

These elements establish Texas Instruments as a strategic core holding, resilient across cycles and well positioned for secular trends in automation, electrification, and connectivity.

Volume and Liquidity

Texas Instruments’ robust trading activity reinforces market liquidity and investor confidence. Average daily volume over the past three months is 7.87 million shares—with the most recent session at 6.12 million, representing 78% of average turnover. This healthy liquidity ensures efficient entry and exit points for both institutional and individual investors.

• Large Public Float: At nearly 907 million shares, the ample float supports dynamic price discovery, limits undue volatility, and facilitates active institutional involvement.
• Market Perception: Sustained volume near technical lows often signals accumulation by long-term investors, particularly when fundamentals remain intact.

Such trading dynamics suggest that price action is not driven by illiquidity or panic, but rather the healthy functioning of an active market—conditions that often precede recovery phases.

Catalysts and Positive Outlook

A number of catalysts are converging to strengthen the medium- and long-term case for TXN:

• Structural Market Demand: The secular increase in semiconductor content across automotive (EVs, ADAS), industrial, and connectivity-driven applications bodes well for analog and embedded solutions, with TI uniquely positioned through its leading market share.
• CHIPS Act Incentives: Recent incentives of $260 million for Q1 2025 directly support expansion and onshoring of TI’s manufacturing footprint, mitigating supply chain risk and enhancing cost efficiency.
• Innovation Leadership: Ongoing R&D and capital investments ($3.8 billion TTM) keep TI at the forefront of analog and signal processing markets, with proprietary 300mm manufacturing delivering sustainable cost advantages.
• Product Pipeline: Continued diversification of the analog segment, burgeoning penetration into automotive/industrial markets, and advances in power management and connectivity solutions expand TAM and protect margins.
• ESG Initiatives: TI’s focus on sustainable operations and ethical supply chain practices resonates with the increasing importance of ESG criteria to institutional capital flows.

This confluence of operational, legislative, and sector-specific drivers fosters a favorable climate for both earnings growth and potential multiple expansion.

Investment Strategies

The technical and fundamental backdrop points toward several compelling scenarios for entry:

• Short-Term (Tactical):
• Buying near technical support ($158.06 or lower)—particularly as oscillators hint at oversold conditions—offers a defined risk window ahead of potential catalysts such as Q2 earnings or sector rotation.
• Positioning ahead of the next ex-dividend date can maximize total return strategies, given the robust dividend yield.
• Medium-Term (6-12 months):
• The confluence of mean-reversion, anticipated revenue growth (Q2 guidance: $4.17B-$4.53B), and expected stabilization in the embedded segment creates potential for share price recovery towards the $177 analyst target.
• Accumulating shares during current consolidation maximizes exposure to the likely upcycle as chip demand rebounds.
• Long-Term (3+ years):
• The stock’s history of dividend growth, structural leadership in analog chips, and alignment with secular technology trends (automation, electrification) make TXN a foundational holding for those seeking growth with downside protection.
• Averaging in on weakness may amplify returns as the sector’s cyclical dynamics play out and new manufacturing capacity comes online.

Each of these timeframes is characterized by a favorable alignment of technical risk control, business momentum, and shareholder-friendly capital allocation.

Is it the Right Time to Buy Texas Instruments?

In conclusion, Texas Instruments combines robust financial strength, a multi-year track record of market leadership, and enviable shareholder returns with a current market valuation that seems unduly discounted by recent cyclical pressures. The company’s dominant position in analog semiconductors, visionary capital investment, and sustained dividend growth provide a stable foundation, while catalysts such as increased automotive and industrial chip demand, ongoing CHIPS Act benefits, and an expanding product portfolio set the stage for renewed growth in the coming quarters.

With strong underlying fundamentals, compelling technical support, and a suite of new structural catalysts, the stock may be entering a new bullish phase—one that justifies a renewed look from growth-oriented and income-focused investors alike. For those seeking a powerful blend of yield, quality, and long-term upside potential in the technology sector, Texas Instruments seems to represent an excellent opportunity to consider adding exposure at this inflection point in both valuation and business momentum.

Texas Instruments stands out as a quality compounder at a moment when cyclical pessimism presents strategic entry points—an opportunity that merits serious consideration in any forward-looking portfolio.

How to buy Texas Instruments stock in United States?

Buying Texas Instruments (TXN) stock online is both straightforward and secure when using a regulated U.S. broker. Whether you're an investor seeking long-term growth or prefer active trading strategies, you have two main choices: buying shares outright (spot buying) or trading Contracts for Difference (CFDs) on the stock. Each method has its unique features, risks, and costs. To help you make the best choice, you’ll find a detailed broker comparison further down this page.

Spot Buying

A cash purchase (spot buying) means directly buying Texas Instruments shares on the stock market through an online broker. This method gives you full ownership of the shares, entitling you to dividends and voting rights at shareholder meetings. In the U.S., most brokers charge a fixed commission per order, typically around $0 to $10 for online trades.

Important example

Example: Suppose the Texas Instruments share price is $158.26. With $1,000 to invest and assuming a $5 brokerage fee, you can buy approximately 6 shares:
- Investment: $1,000
- Brokerage fee: ~$5
- Net amount for shares: $995
- Number of shares: $995 ÷ $158.26 ≈ 6 shares

✔️ Gain scenario:
If TXN rises by 10%, your holding is now worth about $1,100.
Result: +$100 gross gain, or +10% on your original investment.

Trading via CFD

CFD (Contract for Difference) trading allows speculation on Texas Instruments’ share price without owning the actual shares. CFDs enable you to take advantage of both rising and falling prices, often with leverage. Trading CFDs typically involves a spread (the difference between buy and sell prices) plus overnight financing fees if the position is held beyond one day.

Important example

Example: With $1,000, you open a CFD position on TXN with 5x leverage, giving you exposure to $5,000 worth of stock.
- Stake: $1,000
- Leverage: 5x
- Total market exposure: $5,000

✔️ Gain scenario:
If the share price climbs by 8%, your position gains 8% × 5 = 40%.
Result: +$400 gain on your $1,000 (excluding fees).

Final Advice

Before buying Texas Instruments stock, it’s essential to compare brokers’ fees, platforms, and trading conditions. Each broker offers different commission structures, spreads, and features, all of which can impact your returns. The best method—spot buying or CFDs—depends on your investment objectives, whether you prefer long-term investing or more active, leveraged trading. You’ll find our broker comparator further down the page to help you get started with confidence.

Application

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51% of CFD accounts lose money. You will never lose more than your investment.

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Our 7 tips for buying Texas Instruments stock

The latest news about Texas Instruments

Texas Instruments reported Q1 2025 revenue growth of 11% year-over-year, led by strength in analog chips. The company’s just-released results highlighted robust demand for its analog segment, which saw revenue climb 13% year-over-year to $3.21 billion and operating profit rise 20%. This outperformance in analog chips—a segment vital to automotive and industrial end-markets in the United States—offset slower results in embedded processing. The company’s net income rose 7% to $1.18 billion, signaling strong operational execution. These figures, rooted in verified quarterly disclosures, confirm that Texas Instruments continues to deliver stable growth from its core platforms, especially in U.S.-centric industries.

Texas Instruments increased its dividend for the 21st consecutive year, maintaining a forward yield above 3.4%. On April 30, 2025, the company completed its latest ex-dividend date, underlining a reliable capital return policy that is particularly attractive to U.S. income-oriented investors. Over the past two decades, Texas Instruments has delivered a remarkable 23% compound annual growth rate in its dividend, demonstrating resilience through industry cycles and reinforcing investor trust. This dividend performance positions the stock as one of the most dependable options in the American technology sector for yield-seeking portfolios.

The company received $260 million in CHIPS Act incentives during Q1 2025, supporting U.S. semiconductor manufacturing. Utilization of these federal incentives showcases Texas Instruments’ strategic alignment with U.S. government initiatives to onshore critical chipmaking capabilities. The CHIPS Act funds bolster ongoing investments in 300mm wafer fabrication facilities in Texas, directly strengthening the domestic supply chain and enhancing long-term competitiveness. This public-private partnership is anticipated to support both job creation and technological sovereignty in the U.S. market, underscoring the company’s positioning at the forefront of national semiconductor policy.

Texas Instruments provided a Q2 2025 revenue forecast above $4 billion, reaffirming resilience amid industry headwinds. For the current quarter, the company projects sales within a range of $4.17 billion to $4.53 billion and EPS of $1.21 to $1.47. This guidance, released in its official financial outlook, demonstrates stability and confidence despite macroeconomic uncertainties and softness in some end-markets. Analyst consensus currently assigns a 12% price upside and a $177.41 average target, reflecting constructive sentiment about the company’s U.S. business prospects and future cash generation.

Texas Instruments maintains a solid financial position with $5 billion in cash and investment-grade credit ratings. This robust liquidity, alongside disciplined capital allocation (over $6.4 billion returned to shareholders in the last twelve months through dividends and buybacks), provides a cushion against volatility and supports future investments in innovation and capacity expansion. The balanced approach to debt management and ongoing profitability reinforces the company’s long-term stability, which remains a central consideration for professional U.S. financial analysts assessing the sustainability of Texas Instruments’ business model and stock performance.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.