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Investing.com - Truist Securities raised its price target on Texas Instruments (NASDAQ:TXN) to $196.00 from $171.00 on Wednesday, while maintaining a Hold rating on the semiconductor company’s stock. The new target represents modest upside potential for the chip giant, which currently trades at $189.10 with a market capitalization of $195 billion. According to InvestingPro analysis, the stock appears slightly overvalued at current levels.
The price target increase comes despite Truist’s analyst noting a significant shift in the company’s stance on tariffs, which now appear to be impacting business outlook more than previously indicated.
According to Truist, Texas Instruments had previously characterized demand as strong and customer inventories as lean, while dismissing tariffs as "mere noise" during the previous quarter and throughout Q2.
Truist now believes that Q2 strength appears to be more related to tariff pull-in rather than genuine demand growth, suggesting that unless Texas Instruments delivers significant upside to Q3 guidance, Q2 results may represent peak growth for this cycle.
The firm reduced its calendar year 2026 earnings per share estimate for Texas Instruments to $6.12 from $6.46, while the new price target is based on a 32x multiple, representing a consistent 10x premium to the S&P.
In other recent news, Texas Instruments reported strong second-quarter earnings, with revenue totaling $4.448 billion and earnings per share of $1.41, surpassing analyst expectations of $4.358 billion and $1.35 per share. The company experienced a 9% revenue growth quarter-over-quarter, although it anticipates a slower growth rate of 4% in the third quarter. Despite these results, Cantor Fitzgerald noted a more cautious tone from management compared to earlier projections of accelerating revenue growth throughout the year. Benchmark responded to Texas Instruments’ solid performance by raising its price target to $220, maintaining a Buy rating. KeyBanc also reiterated its Overweight rating with a $240 price target, indicating confidence in the company’s future prospects. Stifel maintained a Hold rating with a $192 price target, highlighting the broad-based industrial strength and seasonal improvements in personal electronics that contributed to the revenue increase. Meanwhile, Bernstein kept its Market Perform rating with a $180 price target, acknowledging the company’s continued recovery across most end markets. These developments reflect a mixed sentiment among analysts regarding Texas Instruments’ future performance.
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