These three chip companies are undervalued ahead of Q3 earnings reports
The next earnings season will be getting started in a couple of weeks when big banks report third quarter results. The following week, October 21-25, there will be a number of semiconductor companies reporting results and there are three in particular that undervalued based on the Tickeron Valuation Rating and have solid sales growth, profit margins, and return on equity.
Texas Instruments (Nasdaq: TXN) is set to report on October 22. Its valuation rating is a 23 and that indicates that the company is slightly undervalued in the industry. A rating of 1 points to the most undervalued stocks, while a rating of 100 points to the most overvalued stocks. Texas Instruments’ P/B Ratio (14.16) is slightly higher than the industry average of (3.27). P/E Ratio (23.51) is within average values for comparable stocks, (80.28). Projected Growth (PEG Ratio) (0.83) is also within normal values, averaging (2.13). TXN has a moderately high Dividend Yield (2.03) as compared to the industry average of (0.68). TXN's P/S Ratio (7.18) is slightly higher than the industry average of (4.06).
We see on the chart that the stock has been trending higher since the December low and it is in overbought territory based on the weekly stochastic readings. With the overall market struggling in the last few days, we could see the indicators drop down a little and that would bring the stochastics down out of overbought territory.
The Tickeron SMR rating for this company is 11 and that indicates 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.
Xilinx (Nasdaq: XLNX) is set to report on October 23. The Tickeron Valuation Rating of 21 indicates that the company is slightly undervalued in the industry. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.84) is normal, around the industry mean (3.27). P/E Ratio (25.19) is within average values for comparable stocks, (80.28). Projected Growth (PEG Ratio) (0.43) is also within normal values, averaging (2.13). XLNX has a moderately high Dividend Yield (1.94) as compared to the industry average of (0.68). XLNX's P/S Ratio (9.43) is slightly higher than the industry average of (4.06).
Unlike Texas Instrument, Xilinx has been trending lower since April. In fact the big downward swing that started in April came after the first quarter earnings report and the downswing that started in July came after the second quarter earnings results. While Texas Instruments is in overbought territory, Xilinx is in oversold territory based on the weekly stochastic readings and the 10-week RSI is the lowest it has been in the last three and a half years.
The SMR rating for this company is 15, 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.
Intel (Nasdaq: INTC) is scheduled to report on October 24 and its valuation rating is 7. This indicates that the company is seriously undervalued in the industry. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.00) is normal, around the industry mean (3.27). P/E Ratio (11.83) is within average values for comparable stocks, (80.28). Projected Growth (PEG Ratio) (0.21) is also within normal values, averaging (2.13). INTC has a moderately high Dividend Yield (2.33) as compared to the industry average of (0.68). P/S Ratio (3.08) is also within normal values, averaging (4.06).
The chart for Intel is almost a mix between those of Texas Instruments and Xilinx. The stock was trending higher from its December low before falling sharply in April like Xilinx did. Unlike Xilinx, the stock appears to have re-established an upward trend over the last five months. The stock was approaching overbought territory, but a little selling the last few weeks has moved the indicators down.
TXN's RSI Indicator ascending out of oversold territory
The RSI Indicator 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 (10.453). P/E Ratio (30.118) is within average values for comparable stocks, (80.554). Projected Growth (PEG Ratio) (1.428) is also within normal values, averaging (1.708). 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 (35.823).
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