GET DAILY SIGNALSTexas Instruments (TXN): Can the Stock Reach $340 After a Strong Recovery Year?
Key Takeaways
- The central target of $340 reflects the arithmetic mean of roughly 35 current analyst price targets (about $337), rounded to a clean level; the full target range runs from about $250 to $400.
- The latest verified price of about $277.36 means TXN would need a rise of roughly 23% to reach $340 — a substantial move, not a marginal one.
- Bullish analysts point to a sharp recovery in industrial and automotive demand, rapid data-center growth, and improving free cash flow.
- The biggest risk is valuation: at about 36 times trailing earnings after a 63% year-to-date run, the stock is vulnerable to profit-taking, as the early-November selloff showed.
- Q3 results were strong — revenue of $6.06 billion (up 27.7% year over year) and EPS of $2.62 (up 77%) — but the shares still fell on stretched valuation concerns.
- You can track TXN's Major News and Today's Price Move, review the latest Forecast, and follow upcoming Earnings on Tickeron's dedicated pages.
- For a broader view of AI-driven market opportunities, explore Trending AI Robots.
What Analysts Are Targeting
The $340 central target is grounded in a wide field of published analyst price targets. Aggregated data from S&P Global, cited across Yahoo Finance and other platforms, shows roughly 35 analysts with an average one-year price target near $337 and a consensus rating of "Buy," spanning a low of about $250 and a high of $400. Independently, MarketWatch reports a comparable average near $336.62 with a median around $342.50.
Individual views differ meaningfully. Bank of America Securities maintains a Buy with a $370 target, while Susquehanna's Christopher Rolland and Stifel's Tore Svanberg both hold Buy ratings at $340. Arete Research sits at the high end at $381, while Wells Fargo and DZ BANK carry more cautious Hold ratings at $300. Freedom Capital Markets lifted its target from $260 to $330 in late October, and Evercore ISI's Mark Lipacis remains constructive. The dispersion between roughly $250 and $400 reflects genuine disagreement over how durable the cyclical recovery is and how much premium the market should pay for it. I also checked this using Tickeron’s AI Daily Buy/Sell Signals to see how sentiment aligns with broader signals.
Current Position and the Path to $340
TXN last closed near $277.36, well off its 52-week high of $334.03 but far above the 52-week low of $152.73. Reaching $340 would require about a 23% advance — a substantial move, not an incremental step. The path would likely require the stock to first reclaim its 20-day moving average near $291 and the psychologically important $300 level, then clear the prior high around $334 before $340 comes into view.
Fundamentals are improving in the right direction. Third-quarter revenue grew to $6.06 billion and EPS jumped to $2.62, with net margin expanding to roughly 40%. Management guided fourth-quarter revenue of $5.80–6.30 billion and EPS of $2.45–2.79. Yet the market's reaction — a sharp early-November selloff despite the beat — underscores that strong numbers alone may not carry the stock higher if valuation expectations remain elevated.
Factors That Could Support Further Gains
- Cyclical recovery: Industrial and automotive end markets, which drive much of TXN's analog revenue, are rebounding from a prolonged inventory correction.
- Data-center expansion: Analysts cite accelerating data-center demand as a new growth lever complementing TXN's core analog and embedded franchises.
- Margin and cash flow recovery: Rising utilization and net margin near 40% are supporting stronger free cash flow, a key driver of recent target increases.
- Analyst momentum: A series of upgrades — including Seaport Global and Mizuho moving more constructive and Freedom Capital raising its target — signals improving sentiment.
- Capital returns: A dividend yield above 2% and a long track record of consistent payouts provide a valuation floor for income-oriented investors.
Risks That Could Hold the Stock Back
- Valuation compression: At roughly 36 times trailing earnings, the stock is pricing in a smooth recovery; any stumble could trigger multiple contraction.
- Profit-taking: The early-November 9% drop on strong earnings showed how crowded positioning can unwind even on good news.
- Capex and inventory risk: TXN's heavy capital-spending program and elevated inventory levels could pressure margins if demand softens again.
- Macro and cyclicality: Analog chips are highly cyclical; a slowdown in industrial or automotive demand, or tariff-related disruptions, would weigh on estimates.
- Balance-sheet concerns: A recent $2 billion debt offering added modest leverage, which some investors flagged as a sentiment headwind.
Technical Levels Worth Watching
TXN trades in a wide, volatile range. The 52-week high of $334.03 now acts as the primary resistance zone, with $300 serving as a psychological and round-number hurdle just below it. On the downside, the 60-day moving average near $277 is the nearest support, having been tested in early November. A decisive break below that level could open the way toward lower supports, while a reclaim of $300 and the prior high would be the clearest technical signal that a move toward $340 is gaining traction.
Time Horizon and Key Items to Monitor
Most analyst price targets reflect a roughly 12-month horizon, though individual firms differ. The next key catalyst is TXN's quarterly earnings report, expected around late January, along with management's 2027 guidance. Investors should also watch analog-industry inventory commentary, industrial and automotive purchasing data, capital-spending plans, and any further analyst target revisions. Semiconductor-sector momentum and Federal Reserve policy will shape the broader valuation backdrop.
Leveraging AI Daily Buy/Sell Signals in Research
In my own work, I’ve found Tickeron’s AI Daily Buy/Sell Signals helpful for spotting shifts in momentum across the semiconductor space. The tool scans thousands of stocks and ETFs with AI-driven analysis to flag Buy, Sell, or Hold ideas based on technical and market changes, which can complement manual reviews when evaluating names like TXN.
Final Assessment
Can Texas Instruments reach $340? The question is reasonable but the answer is far from assured. The $340 level, derived from the average of roughly 35 analyst targets (mean near $337), sits about 23% above the current price. Strong earnings growth, recovering end-market demand, and an expanding data-center opportunity support the case for further gains. Against that, a rich valuation, heavy capital spending, and the recent post-earnings selloff illustrate how quickly sentiment can reverse. Analyst targets are widely dispersed — from $250 to $400 — reflecting genuine uncertainty about the pace of the recovery. Whether TXN reaches $340 will depend less on a single quarter and more on sustained margin expansion, durable demand, and whether investors remain willing to pay a premium multiple.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
TXN in +3.87% Uptrend, advancing for three consecutive days on November 03, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where TXN advanced for three days, in 181 of 292 cases, the price rose further within the following month. The odds of a continued upward trend are 62%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In 128 of 233 cases where TXN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 55%.
Bearish Trend Analysis
The 10-day RSI Indicator for TXN moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 27 similar instances where the indicator moved out of overbought territory. In 20 of the 27 cases, the stock moved lower in the following days. This puts the odds of a move lower at 74%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 38 of 59 cases where TXN's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 64%.
The Momentum Indicator moved below the 0 level on November 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on TXN as a result. In 68 of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 76%.
The Moving Average Convergence Divergence Histogram (MACD) for TXN turned negative on November 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 43 similar instances when the indicator turned negative. In 30 of the 43 cases the stock turned lower in the days that followed. This puts the odds of success at 70%.
TXN moved below its 50-day moving average on November 06, 2026 date and that indicates a change from an upward trend to a 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 50 of 62 cases within the following month. The odds of a continued downward trend are 61%.
TXN broke above its upper Bollinger Band on October 26, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 12 (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 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 44 (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 Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 81 (best 1 - 100 worst) indicates that the company is slightly overvalued 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: TXN's P/B Ratio (14.067) is slightly higher than the industry average of (5.443). P/E Ratio (41.961) is within average values for comparable stocks, (15.640). Projected Growth (PEG Ratio) (0.991) is also within normal values, averaging (3.803). Dividend Yield (0.022) settles around the average of (0.014) among similar stocks. P/S Ratio (12.255) is also within normal values, averaging (46.468).
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