As AI chip stocks stumble: Why is this analog maker still up 76% in a year?

What happened

According to an Investing.com article published Friday, November 6, 2026 (data as of November 6, 2026), worries over soaring data center spending pushed Advanced Micro Devices (NASDAQ:AMD) down 23.7% in October, and a semiconductor rout after the midterms knocked 7.6% off Texas Instruments (NASDAQ:TXN) on November 5; yet the analog chipmaker is still up 76.1% over twelve months, which the report attributes to 28% revenue growth last quarter. Texas Instruments' Q3 revenue reached $6.06 billion, up 28% from a year earlier and the third straight quarter of beats; gross margin expanded to 64%, and operating profit hit $2.9 billion, or 47% of revenue. Industrial sales rose more than 40% to a record, data center revenue climbed about 95%, and automotive gained in the mid-teens. Fourth-quarter revenue guidance of $5.8 billion to $6.3 billion came in above analyst expectations. Trailing 12-month free cash flow reached $8.4 billion, against $2.4 billion a year earlier, helped by $1.6 billion in CHIPS Act incentives. The company makes its chips in-house on 300mm wafers, which cut unpackaged chip costs by about 40% versus 200mm, and analysts project free cash flow of $9 to $10 per share in 2027 as capital spending moderates. At $278.10, the stock trades at 35.9 times trailing earnings and 33.9 times 2026 estimates, with a PEG ratio of 0.99; Analog Devices (NASDAQ:ADI) trades at 42.3 times trailing earnings. The average analyst price target is $336.86, about 21% above the current price, and earnings estimates were revised up seven times over 90 days with none revised down. Risks remain: UBS trimmed its target to $360 on multiple compression risk, 2026 capital spending is guided to $2 billion to $3 billion toward the high end, the company's own inventory sits at $4.7 billion (194 days), and the quarterly dividend was raised 7% to $1.52 a share, the 23rd straight annual increase.

Impact and signal

Affected components and suppliers

Source and time

Source: Yahoo Finance — TXN · 11/6/2026 · View original source