Bull of the Day: Texas Instruments (TXN)

What happened

Zacks published a bullish commentary on Texas Instruments (TXN), the world's largest analog semiconductor manufacturer. In its latest third quarter, revenue increased 28% year over year to $6.06 billion, earnings per share surged 77% to $2.62, and operating profit climbed 73%; the analog segment generated 32% revenue growth while embedded processing revenue increased 21%, with management reporting continued growth across industrial, automotive and data center markets. The stock jumped on the earnings beat and analyst upgrades. Over the last 60 days, the Zacks Consensus Estimate for current-year earnings rose 5.6% to $8.89 per share and next-year estimates jumped 13% to $11.12, with no downward adjustments across the current and next fiscal years, earning TXN a Zacks Rank #1 (Strong Buy). The company recently began production at its newest fab in Sherman, Texas, part of a broader $60 billion US manufacturing expansion spanning seven facilities in Texas and Utah. On valuation, TXN trades around 34x forward earnings and generated $7.4 billion in free cash flow over the trailing 12 months. The average number of semiconductors per vehicle doubled between 2017 and 2021, reaching roughly 1,700. The company's industrial and automotive markets are recovering from a prolonged inventory correction. The article notes the cyclical nature of the semiconductor industry and the stock's premium valuation remain important risks.

Impact and signal

Affected components and suppliers

Source and time

Source: Yahoo Finance — TXN · 11/4/2026 · View original source