Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, June 20, 2025

Article Excerpt

TEXAS INSTRUMENTS INC., $198.20, Nasdaq symbol TXN, is a buy. The company 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 announced this week that it will spend $60 billion over the next few years to expand and upgrade its chipmaking facilities at three manufacturing sites in Texas and Utah. To put that cost in perspective, the company’s market cap is $179.6 billion. 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. For 2025, the company’s earnings will probably rise 4% to $5.55 a share, and the stock trades at 35.7 times the estimate. That’s a reasonable multiple in light of Texas Instruments’ high research spending—it equals 12.7% of the company’s revenue in the latest quarter. The $5.44 dividend yields 2.7%. Texas Instruments is a buy. Texas Instruments recent coverage: …