A double-bottom for Texas Instruments (TXN) along with a bullish signal ahead of earnings
Chip stocks got beaten up pretty good in the last few weeks of March, but they bounced back on March 29 and again on April 1. One chip stock in particular that jumped out at me was Texas Instruments (Nasdaq: TXN) as the chart looks like the stock has formed a double-bottom pattern, it has strong fundamentals, and it got a bullish signal from Tickeron on March 29.
We see on the chart how the stock dropped to $103.35 on March 8 and then on March 28, it dropped to $103.63. Between the two lows, the stock rallied up to $112.98 and for the pattern to be confirmed, the stock will need to move above that level.
The Tickeron AI Trend Prediction tool produced the bullish signal on March 29 and that prediction showed a confidence level of 83%. The prediction calls for a gain of at least 4% in the next month. Previous predictions on Texas Instruments have been accurate 57% of the time.
Over the past three years, Texas Instruments has seen its earnings grow by an average of 9% per year. In the last quarterly report, they grew by 16%. Sales have also averaged an annual growth of 9% for the last three years, but they were down 1% in the last quarterly report.
The company’s management efficiency measurements are really strong with a return on equity of 55.6% and a profit margin of 40.6%.
Texas Instruments is set to report earnings again on April 22 and analysts expect the company to earn $1.13 per share and that would mark a drop of 16.3% on a year over year basis.
TXN's RSI Oscillator ascending out of oversold territory
The RSI Oscillator for TXN moved out of oversold territory on November 05, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 20 similar instances when the indicator left oversold territory. In of the 20 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 24, 2025. You may want to consider a long position or call options on TXN as a result. In of 100 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TXN just turned positive on November 21, 2025. Looking at past instances where TXN's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in of 290 cases, the price rose further within the following month. The odds of a continued upward trend are .
TXN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
The 50-day moving average for TXN moved below the 200-day moving average on October 29, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TXN declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for TXN entered a downward trend on November 26, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (9.033) is normal, around the industry mean (10.501). P/E Ratio (30.118) is within average values for comparable stocks, (80.584). Projected Growth (PEG Ratio) (1.428) is also within normal values, averaging (1.710). Dividend Yield (0.033) settles around the average of (0.022) among similar stocks. P/S Ratio (8.764) is also within normal values, averaging (35.830).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. TXN’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock slightly better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of integrated circuit semiconductors and calculators
Industry Semiconductors
Advertisement