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.
Contributor
Harry Richardson — Algorithmic Trader & Strategy Developer Harry is an algorithmic trader specializing in impulse and breakout trading strategies across cryptocurrency and equity markets. With more than 10 years of experience in developing automated trading systems, he focuses on building structured algorithms designed to capture momentum while maintaining strict risk control. His approach combines quantitative analysis, real-market execution, and continuous performance monitoring. Vitalii prioritizes risk management, drawdown control, and strategy stability over short-term optimization, ensuring algorithms are adaptable to changing market conditions. He has developed and tested hundreds of automated strategies, working extensively with live trading environments, forward testing, and portfolio-level algorithm management. His work centers on transforming trading ideas into fully operational, scalable automated systems.
TXN in upward trend: price may ascend as a result of having broken its lower Bollinger Band on August 24, 2026
TXN may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 26 of 35 cases where TXN's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 74%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. 43 of 63 cases where TXN's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for TXN just turned positive on September 09, 2026. Looking at past instances where TXN's MACD turned positive, the stock continued to rise in 32 of 47 cases over the following month. The odds of a continued upward trend are 68%.
Following a +1.22% 3-day Advance, the price is estimated to grow further. Considering data from situations where TXN advanced for three days, in 174 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 59%.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TXN as a result. In 68 of 91 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 75%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
The Aroon Indicator for TXN entered a downward trend on September 10, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding 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.
The Tickeron SMR rating for this company is 29 (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 Profit vs. Risk Rating rating for this company is 39 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 75, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is 46 (best 1 - 100 worst), indicating steady price growth. TXN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 65 (best 1 - 100 worst) indicates that the company is fair valued 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 (13.624) is normal, around the industry mean (7.262). P/E Ratio (40.836) is within average values for comparable stocks, (155.787). Projected Growth (PEG Ratio) (0.957) is also within normal values, averaging (1.686). Dividend Yield (0.021) settles around the average of (0.015) among similar stocks. P/S Ratio (12.626) is also within normal values, averaging (53.078).
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