Are Texas Instruments Incorporated (NASDAQ:TXN) Investors Paying Above The Intrinsic Value?
Jun 02
Have your own idea? Try our Stock Screener
U.S. Semiconductors Industry Analysis
UpdatedJun 06, 2025
DataAggregated Company Financials
Companies121
- 7D4.0%
- 3M18.8%
- 1Y10.4%
- YTD2.0%
The Semiconductors industry is up 4.0% in the last week, with NVIDIA up 3.6%. This takes the industry's 12 month performance to a gain of 10%. Earnings are forecast to grow by 23% annually.
Industry Valuation and Performance
Has the U.S. Semiconductors Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Fri, 06 Jun 2025 | US$6.4t | US$561.3b | US$113.9b | 25.8x | 56.2x | 11.4x |
| Sun, 04 May 2025 | US$5.3t | US$539.5b | US$109.5b | 20.8x | 48.7x | 9.9x |
| Tue, 01 Apr 2025 | US$5.1t | US$537.3b | US$108.9b | 24.6x | 46.6x | 9.4x |
| Thu, 27 Feb 2025 | US$5.9t | US$515.8b | US$93.9b | 32.4x | 62.3x | 11.3x |
| Sat, 25 Jan 2025 | US$6.7t | US$513.6b | US$96.5b | 32.4x | 69.6x | 13.1x |
| Mon, 23 Dec 2024 | US$6.1t | US$513.5b | US$96.7b | 29.1x | 63.3x | 11.9x |
| Wed, 20 Nov 2024 | US$6.1t | US$488.4b | US$83.4b | 30.1x | 72.6x | 12.4x |
| Fri, 18 Oct 2024 | US$6.2t | US$489.1b | US$101.7b | 29.1x | 60.6x | 12.6x |
| Sun, 15 Sep 2024 | US$5.6t | US$485.4b | US$99.5b | 26.9x | 56.7x | 11.6x |
| Tue, 13 Aug 2024 | US$5.2t | US$467.2b | US$94.7b | 27.8x | 55.1x | 11.2x |
| Thu, 11 Jul 2024 | US$6.4t | US$467.9b | US$96.6b | 31.5x | 66.1x | 13.6x |
| Sat, 08 Jun 2024 | US$5.8t | US$461.2b | US$95.7b | 29.2x | 60.8x | 12.6x |
| Mon, 06 May 2024 | US$4.8t | US$446.9b | US$84.0b | 27.4x | 56.7x | 10.6x |
| Wed, 03 Apr 2024 | US$5.0t | US$447.3b | US$81.7b | 29.6x | 61x | 11.1x |
| Fri, 01 Mar 2024 | US$4.5t | US$443.3b | US$81.1b | 29.7x | 56.1x | 10.3x |
| Sun, 28 Jan 2024 | US$4.0t | US$431.9b | US$71.4b | 29.5x | 55.4x | 9.2x |
| Tue, 26 Dec 2023 | US$3.6t | US$433.3b | US$69.5b | 27.4x | 51.5x | 8.3x |
| Thu, 23 Nov 2023 | US$3.3t | US$420.1b | US$62.0b | 25.4x | 53.4x | 7.9x |
| Sat, 21 Oct 2023 | US$2.8t | US$426.3b | US$65.3b | 23.4x | 43.5x | 6.7x |
| Mon, 18 Sep 2023 | US$3.0t | US$430.9b | US$68.7b | 25.3x | 43.7x | 7x |
| Wed, 16 Aug 2023 | US$3.0t | US$421.3b | US$63.0b | 24.9x | 47.2x | 7.1x |
| Fri, 14 Jul 2023 | US$3.1t | US$429.2b | US$67.3b | 23.7x | 46.7x | 7.3x |
| Sun, 11 Jun 2023 | US$2.8t | US$434.2b | US$71.9b | 23.8x | 39.6x | 6.6x |
| Tue, 09 May 2023 | US$2.4t | US$434.2b | US$70.7b | 19x | 33.5x | 5.5x |
| Thu, 06 Apr 2023 | US$2.4t | US$443.8b | US$85.6b | 17.6x | 27.7x | 5.3x |
| Sat, 04 Mar 2023 | US$2.3t | US$445.1b | US$90.1b | 18.4x | 25.3x | 5.1x |
| Mon, 30 Jan 2023 | US$2.2t | US$442.5b | US$91.5b | 17.9x | 23.5x | 4.9x |
| Wed, 28 Dec 2022 | US$1.8t | US$447.3b | US$96.4b | 15.7x | 18.8x | 4x |
| Fri, 25 Nov 2022 | US$2.0t | US$448.8b | US$97.5b | 17.6x | 20.7x | 4.5x |
| Sun, 23 Oct 2022 | US$1.7t | US$440.5b | US$104.0b | 15.3x | 16.2x | 3.8x |
| Tue, 20 Sep 2022 | US$1.9t | US$441.7b | US$105.0b | 16.7x | 17.6x | 4.2x |
| Thu, 18 Aug 2022 | US$2.2t | US$436.8b | US$105.0b | 19.3x | 20.8x | 5x |
| Sat, 16 Jul 2022 | US$1.9t | US$429.1b | US$106.9b | 18.1x | 18x | 4.5x |
| Mon, 13 Jun 2022 | US$2.1t | US$427.9b | US$106.0b | 20.2x | 19.4x | 4.8x |
Price to Earnings Ratio
19.4x
Current Industry PE
- Investors are optimistic on the American Semiconductor industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 56.2x which is higher than its 3-year average PE of 44.2x.
- The 3-year average PS ratio of 8.3x is lower than the industry's current PS ratio of 11.4x.
Past Earnings Growth
- The earnings for companies in the Semiconductor industry have grown 2.4% per year over the last three years.
- Revenues for these companies have grown 9.5% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the U.S. Tech industry?
| US Market | 0.81% | |
| Tech | 2.51% | |
| Semiconductors | 3.99% | |
| Semiconductors | 4.13% | |
| Semiconductor Equipment | 2.10% | |
Industry PE
- Investors are most optimistic about the Semiconductors industry which is trading above its 3-year average PE ratio of 49.0x.
- Analysts are expecting annual earnings growth of 24.0%, which is higher than its past year's earnings decline of 10.6% per year.
- Investors are most pessimistic about the Semiconductor Equipment industry, which is trading close to its 3-year average of 24.5x.
Forecasted Growth
- Analysts are most optimistic on the Semiconductors industry, expecting annual earnings growth of 24% over the next 5 years.
- This is better than its past earnings decline of 11% per year.
- In contrast, the Semiconductor Equipment industry is expected to see its earnings grow by 11% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| NVDA NVIDIA | US$139.99 | 3.6% +US$118.6b | 15.8% | PE44.5x | |
| AVGO Broadcom | US$259.93 | 7.4% +US$84.4b | 85.5% | PE117.6x | |
| MU Micron Technology | US$106.29 | 9.8% +US$10.6b | -18.3% | PE25.4x | |
| TXN Texas Instruments | US$190.49 | 3.0% +US$5.0b | -2.9% | PE35.7x | |
| AMD Advanced Micro Devices | US$115.69 | 2.4% +US$4.3b | -30.6% | PE84.2x |
