Bank of America Upgrades Texas Instruments (NASDAQ:TXN) to Buy

Key Points

• Bank of America upgraded Texas Instruments from "neutral" to "buy" and raised its price target to $320 (from $235), implying roughly a 35% upside from the current share price.
• Strong quarter and raised outlook: TXN reported $1.68 EPS (vs. $1.37 consensus) with 18.6% YoY revenue growth and guided Q2 EPS of $1.77–2.05 and revenue of ~$5.0B–$5.4B, citing demand that extends beyond data centers into industrial markets.
• Mixed signals for investors: analysts' average rating remains "Hold" with a $230.14 average target (well below BofA's $320), while insiders sold about 114,284 shares last quarter—creating potential governance/conviction concerns despite the beat-and-raise.

Texas Instruments (NASDAQ:TXN - Get Free Report) was upgraded by Bank of America from a "neutral" rating to a "buy" rating in a note issued to investors on Thursday, Marketbeat reports. The brokerage presently has a $320.00 price objective on the semiconductor company's stock, up from their prior price objective of $235.00. Bank of America's price objective would indicate a potential upside of 35.42% from the stock's current price.

Several other equities research analysts have also commented on the company. Mizuho set a $215.00 price target on Texas Instruments and gave the stock a "neutral" rating in a research note on Thursday, April 16th. Citigroup reissued a "buy" rating on shares of Texas Instruments in a research note on Thursday, January 15th. Truist Financial set a $250.00 price target on Texas Instruments in a research note on Monday, February 23rd. Weiss Ratings reissued a "hold (c)" rating on shares of Texas Instruments in a research note on Monday, December 29th. Finally, Raymond James Financial set a $240.00 target price on Texas Instruments in a research note on Wednesday, January 28th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, twelve have given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $230.14.

Texas Instruments Stock Performance

Shares of TXN stock opened at $236.31 on Thursday. The company has a quick ratio of 2.83, a current ratio of 4.35 and a debt-to-equity ratio of 0.83. The stock's 50-day moving average price is $206.89 and its 200 day moving average price is $189.75. Texas Instruments has a 52-week low of $151.27 and a 52-week high of $238.80. The stock has a market capitalization of $215.15 billion, a PE ratio of 43.44, a price-to-earnings-growth ratio of 2.12 and a beta of 1.01.

Texas Instruments (NASDAQ:TXN - Get Free Report) last released its earnings results on Wednesday, April 22nd. The semiconductor company reported $1.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.37 by $0.31. The company had revenue of $4.83 billion for the quarter, compared to analysts' expectations of $4.85 billion. Texas Instruments had a return on equity of 30.44% and a net margin of 28.28%.The firm's quarterly revenue was up 18.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $1.23 EPS. Texas Instruments has set its Q2 2026 guidance at 1.770-2.050 EPS. As a group, equities research analysts forecast that Texas Instruments will post 6.35 EPS for the current year.

Insider Activity at Texas Instruments

In related news, VP Hagop H. Kozanian sold 6,843 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $225.95, for a total value of $1,546,175.85. Following the transaction, the vice president directly owned 75,425 shares of the company's stock, valued at approximately $17,042,278.75. This trade represents a 8.32% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Rafael R. Lizardi sold 64,532 shares of the stock in a transaction on Tuesday, February 10th. The shares were sold at an average price of $220.74, for a total value of $14,244,793.68. Following the completion of the sale, the chief financial officer owned 92,550 shares of the company's stock, valued at approximately $20,429,487. This represents a 41.08% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 114,284 shares of company stock worth $25,531,935. Company insiders own 0.60% of the company's stock.

Institutional Trading of Texas Instruments

Several large investors have recently modified their holdings of TXN. Artisan Partners Limited Partnership boosted its holdings in Texas Instruments by 1.7% in the third quarter. Artisan Partners Limited Partnership now owns 758,349 shares of the semiconductor company's stock worth $139,331,000 after purchasing an additional 12,562 shares during the period. Rothschild & Co Wealth Management UK Ltd boosted its stake in Texas Instruments by 1.3% in the third quarter. Rothschild & Co Wealth Management UK Ltd now owns 1,307,580 shares of the semiconductor company's stock valued at $240,242,000 after acquiring an additional 16,260 shares during the period. Greenland Capital Management LP boosted its stake in Texas Instruments by 66.3% in the third quarter. Greenland Capital Management LP now owns 58,151 shares of the semiconductor company's stock valued at $10,684,000 after acquiring an additional 23,177 shares during the period. Providence Capital Advisors LLC acquired a new position in Texas Instruments in the third quarter valued at approximately $6,347,000. Finally, Rakuten Investment Management Inc. acquired a new position in Texas Instruments in the third quarter valued at approximately $7,461,000. 84.99% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Texas Instruments

Here are the key news stories impacting Texas Instruments this week:

• Positive Sentiment: Q1 beat: TI reported $1.68 EPS vs. consensus ~$1.37 and revenue of ~$4.8B (+18.6% YoY), with margin expansion and stronger operating cash flow — a core driver for the rally. TI Q1 Press Release
• Positive Sentiment: Raised Q2 outlook: TI guided Q2 EPS well above Street (EPS range 1.77–2.05 vs. ~1.57 consensus) and revenue ~$5.0B–$5.4B, signaling durable demand into the quarter. Reuters: Forecasts Q2 Revenue Above Estimates
• Positive Sentiment: Broader demand drivers: Management and coverage highlight that strength isn’t just data centers — industrial manufacturing demand is rebounding, helping diversify revenue and lessen cyclical risk. MarketWatch: Topped Wall Street's Outlook
• Positive Sentiment: Analyst support: Some firms reiterated/maintained buy or overweight views after the print (Rosenblatt kept a Buy), supporting momentum and investor confidence. Globe and Mail: Rosenblatt Keeps Buy Rating
• Neutral Sentiment: Management color: The full earnings call transcript provides more detail on customer segmentation, inventory dynamics and capex cadence for investors wanting to judge sustainability of the data-center lift. Seeking Alpha: Q1 Earnings Call Transcript
• Negative Sentiment: Insider selling: Reports show executives have sold shares recently, which some investors view as a cautionary signal even amid the beat-and-raise. Yahoo Finance: Insider Selling

About Texas Instruments

Texas Instruments Inc NASDAQ: TXN is a global semiconductor company headquartered in Dallas, Texas, that designs and manufactures analog and embedded processing chips. The company's products are used across a wide range of end markets, including industrial, automotive, personal electronics, communications and enterprise equipment. TI's business emphasizes components that condition, convert, manage and move electrical signals—capabilities that are foundational to modern electronic systems.

TI's product portfolio includes a broad array of analog integrated circuits—such as power management, amplifiers, data converters and interface devices—as well as embedded processors and microcontrollers used to control systems and run real-time applications.

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