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Investing.com - Truist Securities has reiterated its Hold rating and $171.00 price target on Texas Instruments (NASDAQ:TXN), citing management’s expectation for year-over-year growth to expand in the second half of 2025. According to InvestingPro data, the stock is currently trading near its 52-week high of $220.38, suggesting potential overvaluation compared to its Fair Value.
The research firm noted that Texas Instruments’ CEO recently indicated revenue performance could outpace current Wall Street consensus estimates by approximately 5%. With a market capitalization of $196.25 billion and a projected revenue growth of 11% for FY2025, the company maintains a strong market position. Management views the current market through a traditional cyclical recovery lens, with tariffs representing only temporary disruptions.
Texas Instruments expressed optimism about growth in the industrial end market and clarified that recent reports about price increases are "less controversial than they seem." The company often adjusts pricing to encourage customers to transition to newer or more mainstream versions of older products.
The semiconductor manufacturer has manufacturing capacity across multiple global locations including Chengdu, Japan, Germany, and through foundry operations in Taiwan. This diversified production footprint enables Texas Instruments to meet demand in China without requiring U.S. certificate of origin products.
Truist Securities identifies the next significant catalyst for Texas Instruments as its second-quarter earnings report scheduled for July 22, which the firm suspects will be a positive event for the company and its industry peers. InvestingPro analysis reveals that 11 analysts have revised their earnings upward for the upcoming period, while the company maintains a robust financial health score of 2.53 (GOOD). Discover more insights and 14 additional ProTips with an InvestingPro subscription, including detailed analysis in the comprehensive Pro Research Report available for TXN and 1,400+ other US stocks.
In other recent news, Texas Instruments announced a significant $60 billion investment in U.S. semiconductor manufacturing facilities, marking the largest such investment in the country’s history. This expansion will span three sites in Texas and Utah, with the Sherman, Texas location receiving up to $40 billion for four fabrication plants. The investment is expected to support over 60,000 U.S. jobs and enhance the company’s manufacturing capacity. Meanwhile, analysts at TD Cowen raised their price target for Texas Instruments to $200, up from $160, while maintaining a Hold rating. The discussions with the company’s investor relations team focused on industry dynamics and the company’s strategies in the U.S. and China. Cantor Fitzgerald maintained a Neutral rating with a $200 price target, citing concerns about potential gross margin headwinds due to increased depreciation expenses. Conversely, Bernstein SocGen upgraded Texas Instruments to Market Perform, raising the price target to $180, following previous concerns about margin risks. The analysts noted that with decreasing capital expenditures, free cash flow per share is anticipated to rise soon.
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