Texas Instruments offers a powerful combination of a durable business model, high returns on capital, and shareholder‑friendly policies. The company dominates many niches in analog and embedded semiconductors where products have long lifecycles, pricing is rational, and design‑wins can generate revenue for a decade or more, which supports resilient margins and rising free cash flow across cycles.
On top of this, the company is a proven capital allocator: it has raised its dividend for 22 consecutive years.
For long‑term investors seeking a high‑quality, wide‑moat compounder with a growing dividend anchored in industrial and automotive semiconductors, the shares are an attractive buy. Investors are acquiring a company with structurally high margins, long‑duration product cycles and a history of disciplined capital allocation, plus an accelerating recovery in industrial and auto and growing exposure to secular themes like AI‑enabled edge devices and data centres.
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.
Texas Instruments has now agreed to acquire Silicon Laboratories Inc. (Nasdaq symbol SLAB), which designs chips that wirelessly connect devices to the Internet (those connections are typically called the Internet of Things).
The company will pay $7.5 billion in cash. If Silicon Labs shareholders and regulators approve, the company expects to complete the purchase in the first half of 2027.
The addition of Silicon Labs’ technology will let Texas Instruments offer a wider range of products to its customers. As well, transferring Silicon Labs’ production from overseas chipmaking plants to Texas Instruments’ own facilities will help cut $450 million from its annual costs within three years.
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Texas Instruments posts stronger results on rising chip demand
Texas Instruments continues to benefit from rising chip demand as customers work down their pre-tariff inventories. However, concerns that the pace of growth is slowing has caused the stock to fall 12% in the past month.
In the quarter ended September 30, 2025, the company’s revenue rose 14.2%, to $4.74 billion from $4.15 billion a year earlier. That beat the $4.64 billion consensus forecast.
Partly due to costs related to the construction of new plants in Texas and Utah, earnings in the quarter gained just 0.7%, to $1.48 a share (or a total of $1.364 billion) from $1.47 a share (or $1.362 billion). That missed the consensus estimate of $1.49 a share. However, if you factor out restructuring costs, including job cuts, it probably earned $1.58 a share in the latest quarter.
With the November 2025 payment, Texas Instruments increased your quarterly dividend by 4.4%, to $1.42 a share from $1.36. The new annual rate of $5.68 yields 3.0%.
Texas Instruments has 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.
Recommendation in Wall Street Stock Forecaster: Texas Instruments Inc. is a buy.
