Texas Instruments’ dominant position in analog semiconductors - essential components that bridge the digital and physical worlds - provides unmatched defensive characteristics and pricing power. What’s more, the industrial market’s broad-based recovery, coupled with customers rebuilding inventories from historically low levels, positions the company for sustained growth momentum.
The investment case strengthens considerably when examining the company’s unprecedented capacity expansion and capital allocation strategy. A $60+ billion U.S. manufacturing investment represents not just growth capital, but strategic positioning for the next decade of semiconductor demand. This expansion, focused on advanced 300mm wafer technology, will cement Texas Instruments’ cost leadership while supporting major customers like Apple, Nvidia and Ford.
The stock trades at 31.0 times the company’s forward earnings forecast. That’s a high multiple—but justified by market leadership, cyclical recovery momentum, and substantial growth investments that position the company for multi-year outperformance as semiconductor demand accelerates.
TEXAS INSTRUMENTS INC. (Nasdaq symbol TXN; www.ti.com) is a leading maker of analog chips. Its products convert inputs, like touch, sound and pressure, into electronic signals that computers can understand. Other company products include embedded processor chips, which perform mathematical calculations, and calculators, themselves.
Texas Instruments plans to spend $60 billion over the next few years to expand and upgrade its chipmaking facilities at three manufacturing sites in Texas and Utah.
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These investments will help many of Texas Instruments’ clients—including Apple, Ford Motor and SpaceX—avoid U.S. tariffs on imported chips. Those long-term alliances also help cut the company’s risk.
Texas Instruments’ payout star extends rising-dividend streak to 22 years
In the quarter ended June 30, 2025, the company’s revenue rose 16.4%, to $4.45 billion from $3.82 billion a year earlier. That beat the $4.35 billion consensus forecast. The higher revenues are mainly because manufacturers placed larger orders to avoid tariffs.
Earnings in the quarter also gained 15.6%, to $1.41 a share (or a total of $1.30 billion) from $1.22 a share (or $1.13 billion). That topped the $1.35 a share consensus estimate.
Demand for new chips from automakers and other industrial customers has slowed due to the uncertainty over tariffs.
With the November 2025 payment, Texas Instruments will increase your quarterly dividend by 4.4%, to $1.42 a share from $1.36. The new annual rate of $5.68 yields 3.3%.
Texas Instruments has now raised the annual dividend rate each year for the past 22 years. Including this latest increase, it has raised your dividend by an average 8.6% annually over the last 5 years. The company’s TSI Dividend Sustainability Rating is Above Average.
The company’s long-term outlook remains bright, particularly as new plants in Texas and Utah will help lower its operating costs.
For 2025, the company’s earnings will probably rise 4% to $5.55 a share, and the stock trades at 31.0 times the estimate. That’s a reasonable multiple in light of Texas Instruments’ high research spending of around 13% of the company’s revenuer.
Recommendation in Wall Street Stock Forecaster: Texas Instruments Inc. is a buy.
