What Does Texas Instruments' (TXN) Demand Shift Reveal About Its Competitive Edge in Semiconductors?

• In early September 2025, Texas Instruments reported that semiconductor demand cooled following an April rush, attributing previous order spikes to tariff concerns and signaling continued weakness in its automotive segment despite signs of recovery in other end markets.
• This commentary, combined with neutral institutional sentiment and uncertainty around macroeconomic factors, has refocused investors on the company's underlying demand trends and sector positioning.
• We’ll explore how Texas Instruments’ remarks on shifting semiconductor demand and delayed automotive recovery might alter its investment narrative.

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Texas Instruments Investment Narrative Recap

As a Texas Instruments shareholder, you need to believe in the company's ability to maintain leadership in analog and embedded chips despite mounting competition and ongoing shifts in demand. The recent news about cooling post-April semiconductor orders and sluggish automotive recovery brings these short-term demand trends into sharper focus, but appears unlikely to fundamentally shift the most important catalyst, industrial automation growth, or the main risk, which is capacity underutilization from continued factory investment.

Among recent announcements, the company's plans for a US$60 billion investment in new US semiconductor fabs is most relevant to these demand uncertainties. This initiative may help address supply chain resilience concerns and better position TI if industrial and automotive demand rebounds, but it also highlights the risk of underused assets if end-market weakness persists. In contrast to expectations about industrial strength, investors should not overlook...

Read the full narrative on Texas Instruments (it's free!)

Texas Instruments is projected to achieve $22.3 billion in revenue and $7.9 billion in earnings by 2028. This outlook assumes an annual revenue growth rate of 10.1% and a $2.9 billion increase in earnings from current earnings of $5.0 billion.

Uncover how Texas Instruments' forecasts yield a $205.73 fair value, a 11% upside to its current price.

Exploring Other Perspectives

The highest-forecast analysts were expecting Texas Instruments' revenue to rise to about US$27.9 billion and earnings to reach US$11.7 billion by 2028, driven by rapid growth in AI-related chips and fast automotive recovery. This outlook is much more optimistic than the consensus but, after recent signs of cooling demand, it is worth considering how these perspectives might shift over time, so it is smart to explore how differing views could impact your investment approach.

Explore 7 other fair value estimates on Texas Instruments - why the stock might be worth as much as 11% more than the current price!

Build Your Own Texas Instruments Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Texas Instruments research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.
• Our free Texas Instruments research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Texas Instruments' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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