Company Overview
Texas Instruments Inc designs and manufactures semiconductors in the United States. The company’s market capitalization is about USD 170 billion. It serves a range of end markets through analog and embedded processing products. Its competitive positioning details are not provided.
Analysis of recent data
FundamentalsIn its latest reported USD figures for 2025, Texas Instruments recorded revenue of USD 17.68 billion and net income of USD 5.00 billion, representing a 13.0% year‑over‑year increase in revenue. Operating margin was 34.06% and net margin 28.28%, showing strong profitability.
Return on equity reached 30.44%, indicating efficient capital use. Gross margin of 57.02% highlights pricing strength in its analog and embedded processing segments.
The company held USD 3.23 billion in cash against USD 1.00 billion in total debt, providing balance sheet flexibility. Depreciation and amortization totaled USD 1.92 billion, while capital expenditures were USD 4.55 billion, reflecting continued investment in manufacturing capacity.
Beta of 1.06 suggests market‑like volatility, and interest‑coverage data were not provided.
Valuation
DCF / MultiplesAt a share price of USD 187.21, the market valuation stands well above the discounted‑cash‑flow indication. The DCF model points to a materially lower intrinsic value than the current price, implying that investors expect profitability to remain durable.
With a trailing P/E of 34.08 and gross margin of 57.02%, the market appears to price in sustained high returns. If growth or margins soften, the valuation could compress, though the company’s low debt and strong cash position offer resilience.
Conclusion
TakeawayTexas Instruments shows strong profitability and a solid balance sheet. The market seems confident in its ability to sustain high margins. However, the valuation already reflects these strengths. Any slowdown in growth could pressure the stock’s premium pricing.