Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments. The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products. The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other. It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.

Texas Instruments looks like a high-quality but expensive business: profitability and cash generation are strong, but the market is already pricing in a very high level of expectations. On valuation multiples, the picture is stretched: P/E, P/S, P/B, and P/FCF are noticeably above the industry median, indicating a valuation premium and limiting the potential for further upside without faster growth. At the same time, the recent trend in P/E and P/FCF has been improving, but P/S and P/B remain at very high levels, so the overvaluation is not fully eliminated. The company’s strength lies in its exceptional operating efficiency: ROE, ROA, ROI, and return on tangible equity are significantly above the industry and have remained consistently high over the years. Profit margins are also impressive: operating and net margins are at very high levels and show no deterioration, while gross margin remains stable, suggesting strong pricing power and cost discipline. Revenue, gross profit, EBITDA, operating income, and net income have generally grown compared with earlier periods, confirming the fundamental resilience of the business. Liquidity is very comfortable: the current ratio and quick ratio are well above normal, and cash on hand is high, so short-term risks appear low. Leverage is not critical, but debt/equity is above the industry median, and debt remains substantial, which means the balance sheet cannot be described as perfectly conservative. Dividend yield has declined compared with previous periods, so the dividend argument for revaluation is weaker now than before. Overall, this is a company with excellent earnings quality and a strong balance sheet, but a very expensive valuation relative to the industry. For an investor, this means the underlying fundamentals support a premium to the market, but the size of that premium is already large, so it is reasonable to take a more cautious view of fair value. Upside potential remains, but it depends primarily on further revenue growth and the preservation of high margins, rather than on multiple expansion.

Texas Instruments Incorporated

Средний индекс, значительно упал. Быки в растерянности.

Medium index, significantly down. The bulls are confused.

Слабый индекс, без изменений. Уверенность медведей остается на низком уровне.

Weak index, flat. Bearish confidence remains low.

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Сильный индекс, без изменений. Рынок не поддерживает медведей.

Strong index, flat. The market does not support the bears.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Сильный индекс, без изменений. Отток средств из шортов на высоком уровне.

Strong index, flat. Outflow of funds from shorts at a high level.

TXN demonstrates strong profitability, high liquidity, and steady growth, but trades at a significant premium to the industry, which limits upside.

The S&P 500 Index ($SPX) (SPY) is up +0.89%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.81%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.95%. E-mini S&P futures (ESU26) are up +0.82%, and September E-mini Nasdaq futures (NQU26) are up +0.85%.
Stock indexes are trading higher today, supported by today’s decline of more than -2% in oil prices. The stock and bond markets took today’s CPI report largely in stride. Aug core CPI came in at +0.3% m/m, slightly above market expectations of +0.2%, while nominal CPI was +0.4% m/m, in line with expectations. T-note prices are trading slightly higher, even though the markets raised the odds of a FOMC rate hike next week to 88% from 75% on Thursday.
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Today’s Aug US CPI report of +0.4% m/m was in line with market expectations, but the core CPI report of +0.3% m/m was slightly stronger than market expectations of +0.2% m/m. On a year-on-year basis, the Aug CPI report of +3.4% y/y was unchanged from July and was in line with market expectations. Meanwhile, the Aug core CPI report of +2.4% y/y eased slightly from July’s +2.5% and posted a new 5.5-year low, and was in line with market expectations.
Today’s CPI report caused the markets to raise the odds for a +25 bp FOMC rate hike at next week’s meeting on September 15-16 to 88% from 75% on Thursday.
Stocks were undercut by today’s weaker-than-expected US consumer sentiment report. The University of Michigan’s preliminary Sep US consumer sentiment index fell by -3.9 points to 47.8, weaker than market expectations for a -0.6 point decline to 51.3.
Also on the negative side, the University of Michigan reported that Sep US consumer 1-year inflation expectations rose to +4.6% from +4.0% in August, stronger than expectations of +4.2%. Sep consumer 5-10 year inflation expectations rose to +3.4% from +3.3% in August, and were stronger than market expectations of +3.3%.
The US-Canada trade war continues to weigh on stock market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by blocking imports of some Canadian products and slapping new tariffs on others, and by seeking to bar Canadian companies from selling to US government contractors.
Oct WTI crude oil prices (CLV26) are down more than -2% today, giving back part of Thursday’s +6.7% surge to a 3.5-month high. Oil prices are still sharply higher on the week, but fell back today after the International Energy Agency today warned that high oil prices and restricted oil supply will cause the biggest drop in global oil demand this year since the Covid-19 pandemic.
There were reports that two ships were struck by unidentified projectiles near Oman on Thursday, presumably by Iran. Also, Axios reported that Saudi Crown Prince Mohammed bin Salman called President Trump twice on Thursday, asking him to launch a new military attack against the Houthis in Yemen, who are gaining control of more territory in Yemen near the critical Bab el-Mandeb Strait and have been striking Saudi oil facilities. Saudi Arabia told OPEC on Thursday that its crude production in August fell to 6.238 million bpd, the lowest since 1990.
Overseas stock markets are mixed. The Euro Stoxx 50 is up +0.66%. China's Shanghai Composite closed down -1.18%. Japan's Nikkei-225 Stock Average closed down -1.91%.
Interest Rates
December 10-year T-notes (ZNZ6) are up +1 tick. The 10-year T-note yield is down -3.1 bp to 4.932%, following Thursday’s +11 bp surge to a 2.75-year high of 4.963%. T-note prices shook off the CPI report and the higher odds of an FOMC rate hike next week and are trading higher on today’s decline in oil prices. The 10-year break-even inflation expectations rate is down -3.9 bp to 2.378%, falling back from Thursday’s 3.25-month high of 2.42%.
European government bond yields are mixed. The 10-year German bund yield today posted a new 24-year high of 3.532% and is up +1.1 bp to 3.512%. The 10-year UK gilt yield edged to a 19-year high of 5.380% but then backed off and is down -3.2 bp to 5.342%.
Markets are discounting a 78% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29. The ECB at this week’s meeting raised its deposit facility rate by 25 bp to 2.50%, as expected, and said inflation will stay above 2% for an "extended period."
US Stock Movers
Oracle (ORCL) is up +0.6% after reporting late Thursday that its cloud infrastructure sales rose +121% to $7.4 billion, above the market consensus of $7.2 billion. Oracle’s co-CEO Clay Magouyrk said, “We are delivering data center and GPU capacity at a pace that would have seemed impossible only a year ago.” The company also said it sold more than $30 billion in AI cloud contracts during the latest quarter, higher than expectations. Fiscal-Q1 sales rose +30% and the adjusted EPS report of $1.92 per share was higher than market expectations of $1.75.
The positive Oracle news boosted other cloud infrastructure stocks, with Applied Digital (APLD) up more than +2% and Coreweave (CRWV) up more than +1%.
Chipmakers are higher nearly across the board on the positive Oracle news, with TI (TXN), ON Semiconductor (ON), and Analog Devices (ADI) up more than +4%.
The Magnificent Seven are all trading higher today, led by gains of more than +2% in Apple (AAPL) and Alphabet (GOOGL). Apple is seeing continued support after releasing its new iPhone Duo earlier this week, its first foldable phone.
Microsoft (MSFT) is trading slightly higher after saying it plans a data center push to triple its computing power since a current shortage is forcing it to turn away new AI and cloud business.
Crypto stocks are trading higher due to today’s rally of about +2% in bitcoin. Mara Holdings (MARA) is up more than +7%. Strategy (MSTR)and Coinbase (COIN) are up more than +5%.
Adobe (ADBE) is little changed after providing slightly disappointing guidance, which fueled concerns that AI will cannibalize software revenue.
Dell Technologies (DELL) is up more than +10% after RBC Capital Markets started research coverage with an outperform rating and $640 price target based on expectations for strong AI infrastructure demand.
Earnings Reports (9/11/2026)
Kroger Co (KR) and Rent the Runway Inc (RENT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Shake Off CPI Report and Rally on Lower Oil Prices

The S&P 500 Index ($SPX) (SPY) closed down -0.48% on Wednesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.77%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.29%. E-mini S&P futures (ESU26) fell -0.46%, and September E-mini Nasdaq futures (NQU26) fell -0.30%.
Stock indexes retreated on Wednesday, with the Dow Jones Industrial Average falling to a 5-week low. The broader market was under pressure for a second day amid mounting inflation risks. WTI crude oil prices surged more than +3% today to a 3.25-month high amid escalating hostilities in the Middle East, heightening concerns about energy flows through the Strait of Hormuz. The surge in energy prices is boosting inflation expectations and pushing bond yields higher. The 10-year T-note yield rose to 4.85% on Wednesday, the highest in 2.75 years. The higher bond yields weighed on stocks.
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On the positive side, chipmakers and AI-infrastructure stocks gained on Wednesday. Energy producers also rose on stronger crude oil prices.
The escalating trade war between the US and Canada is also weighing on market sentiment. On Tuesday, Canada imposed tariffs of 15% to 50% on hundreds of US goods in retaliation for the US action last month to impose 50% tariffs on $20 billion of imports from Canada. The US responded by moving to block imports of some Canadian products and slapping new tariffs on others, as well as seeking to bar Canadian companies from selling to US government contractors.
US MBA mortgage applications fell -2.7% in the week ended September 4, with the purchase mortgage sub-index down -0.2% and the refinancing mortgage sub-index down -6.2%. The average 30-year fixed-rate mortgage rose +6 bp to a 14-month high of 6.85% from 6.79% in the prior week.
Oct WTI crude oil prices (CLV26) surged more than +3% on Wednesday to a 3.25-month high due to the latest escalation of hostilities in the Middle East. The US destroyed five Iranian tankers carrying crude in response to two attempts by Iran to hit US Navy ships with ballistic missiles. Iran responded by firing missiles at a US air base in Jordan and warning ships in the Persian Gulf that they would be attacked. Iran also said on Wednesday that it is ready for a more intense war and will escalate counterstrikes if the US continues attacking its territory and infrastructure.
The markets are discounting a 61% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 fell to a 5-week low and closed down -1.58%. China's Shanghai Composite closed up +0.28%. Japan's Nikkei-225 Stock Average closed down -0.19%.
Interest Rates
December 10-year T-notes (ZNZ6) closed down by -7.5 ticks on Wednesday. The 10-year T-note yield rose +4.5 bp to 4.833%. T-notes fell to a 20-month nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 2.75-year high of 4.853%. T-notes are under pressure from higher crude oil prices, which are boosting inflation expectations, as WTI crude oil rose more than +3% on Wednesday to a 3.25-month high. T-notes added to their losses on Wednesday after the Treasury announced that it will buy back up to $6 billion in longer-dated US Treasuries, below expectations of at least $10 billion.
T-notes recovered from their worst level on Wednesday amid strong demand for the Treasury’s $39 billion auction of 10-year T-notes. The auction had a bid-to-cover ratio of 2.71, well above the 10-auction average of 2.49.
European government bond yields moved higher on Wednesday. The 10-year German bund yield climbed to a new 15-year high of 3.444% and finished up +7.8 bp on that high. The 10-year UK gilt yield rose +8.8 bp to 5.261%.
French July manufacturing production unexpectedly fell -0.8% m/m, weaker than expectations of a +0.4% m/m increase.
Markets are discounting a 100% chance of a +25 bp ECB rate hike at Thursday’s policy meeting.
US Stock Movers
Telecommunication and cable providers moved lower on Wednesday, led by a -6% fall in Comcast (CMCSA), which led losers in the Nasdaq 100 after CFO Armstrong said he sees no improvement in Q3 broadband subscriber losses. Charter Communications (CHTR) also fell more than 8%, and Verizon Communications (VZ) and AT&T (T) closed down more than 1%.
Chipmakers and AI-infrastructure stocks moved higher on Wednesday, limiting losses in the overall market. Marvell Technology (MRVL) closed up more than +4%, and Advanced Micro Devices (AMD) closed up more than +3%. Also, Micron Technology (MU) closed up more than +2%, and ARM Holdings (ARM), Western Digital (WDC), SanDisk (SNDK), Intel (INTC), Texas Instruments (TXN), and Qualcomm (QCOM) closed up more than +1%.
Energy producers and service providers rallied on Wednesday after WTI crude oil rose more than +3% to a 3.25-month high. APA Corp (APA) and ExxonMobil Holdings (XOM) closed up more than +2%. Also, Chevron (CVX), Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY), ConocoPhillips (COP), and Valero Energy (VLO) closed up more than +1%.
ServiceTitan (TTAN) closed down more than -29% after reporting a Q2 EPS loss of -26 cents, a bigger loss than the consensus of -25 cents.
Casy’s General Stores (CASY) closed down more than -14% to lead losers in the S&P 500 after reporting a Q1 gross margin of 21.8%, below the consensus of 22.3%.
Chewy (CHWY) closed down more than -10% after forecasting a sequential decline in Q3 gross margin, due to a timing shift as certain rebate benefits shifted from the second half of the year into Q2.
Smithfield Foods (SFD) closed down more than -6% after cutting its Q3 earnings outlook, citing “continued compression in the industry fresh pork market spread and lower hog prices.”
Dyne Therapeutics (DYN) closed down more than -5% after JPMorgan Chase downgraded the stock to underweight from neutral with a price target of $10.
Booking Holdings (BKNG) closed down more than -3% after losing an EU court fight over its takeover of Sweden’s Etraveli Group, when a judge said regulators were right to conclude that the planned buyout threatened fair competition.
Chime Financial (CHYM) closed up more than +7% after boosting its full-year revenue forecast to $2.76 billion to $2.77 billion from a previous forecast of $2.73 billion to $2.75 billion, stronger than the consensus of $2.74 billion.
Meta Platforms (META) closed up more than +6% after analysts reported positive reviews of the company’s debut of Muse, an AI assistant.
HP Inc (HPQ) closed up more than +3% after announcing a pact with Red Hat on an AI platform.
Sysco (SYY) closed up more than +2% after raising its mid-term financial targets for fiscal years 2028 and 2029 to annualized net sales growth of 4% to 7%, up from a previous view of 4% to 6%.
Earnings Reports (9/10/2026)
Adobe Inc (ADBE), Copart Inc (CPRT), Macy's Inc (M), Oracle Corp (ORCL).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Fall as Crude Prices Soar and Bond Yields Climb

Wednesday, September 9, 2026
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Eli Lilly and Co. (LLY), Palo Alto Networks, Inc. (PANW) and Texas Instruments Inc. (TXN), as well as a micro-cap stock Stratus Properties Inc. (STRS). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-Markets Trade Lower Ahead of Inflation Data Thursday, Friday
Today's Featured Research Reports
Eli Lilly’s shares have outperformed the Zacks Large Cap Pharmaceuticals industry over the past year (+49.9% vs. +34.7%). The company has seen extraordinary momentum in its cardiometabolic franchise. Demand for its popular GLP-1 drugs, Mounjaro and Zepbound, remains strong, making them the company’s key top-line drivers.
Lilly’s other new drugs like Kisunla, Omvoh and Jaypirca are also contributing to top-line growth. It is also making rapid pipeline progress in obesity and diabetes. Its new GLP-1 obesity pill, Foundayo, is expected to be a commercial game-changer. Its next-generation weight loss pill, retatrutide, if approved, could become another multibillion-dollar product.
Lilly has announced several M&A deals aimed at diversifying beyond GLP-1 drugs and expanding its presence in immunology, oncology and neuroscience. Rising pricing pressure on some drugs and potential competition in the GLP-1 market are some top-line headwinds.
(You can read the full research report on Eli Lilly here >>>)
Shares of Palo Alto Networks have outperformed the Zacks Security industry over the past year (+70.8% vs. +66.8%). The company continues to benefit as enterprises consolidate security tools and adapt defenses for AI-driven threats. Platformization is supporting larger customer commitments, while growth across SASE, software firewalls, Prisma AIRS, XSIAM, observability and identity broadens recurring revenues.
CyberArk and Chronosphere are extending the company into new security categories, with integration progress supporting cross-selling. Cash generation remains healthy, and fiscal 2027 guidance points to continued revenue growth and operating-margin expansion.
However, gross-margin compression from the cloud and SaaS mix, rising hosting and component costs, competition, a larger diluted share base and acquisition execution risks temper the outlook. The balance of durable demand drivers and execution risks supports a Neutral view.
(You can read the full research report on Palo Alto Networks here >>>)
Texas Instruments’ shares have outperformed the Zacks Semiconductor - General industry over the past year (+44.4% vs. +33.9%). The company is benefiting from broadening demand across industrial, data center and automotive markets, while its analog and embedded processing franchises support durable long-term growth. Internal manufacturing, expanding 300-millimeter capacity and CHIPS Act support strengthen supply control and cost efficiency.
The Silicon Labs acquisition should deepen wireless connectivity capabilities and broaden embedded opportunities. Cash generation is recovering as revenue and factory loadings rise, supporting dividends and buybacks. Management also sees demand broadening into the second half of 2026.
Risks remain from elevated debt, geopolitical and trade exposure, competition, seasonality and higher manufacturing costs. Still, broader end-market demand and rising free cash flow support an Outperform view for TXN shares.
(You can read the full research report on Texas Instruments here >>>)
Shares of Stratus have outperformed the Zacks Real Estate - Operations industry over the past year (+22.9% vs. -12.9%). This microcap company with a market capitalization of $151.26 million is anchored by its board-approved liquidation plan, which provides a defined path to monetizing assets and returning capital to shareholders. Strong liquidity, including $73.5 million in cash and additional revolver capacity, supports execution while allowing the company to advance development assets to value-enhancing milestones before sale.
Near-term catalysts include pending asset dispositions at New Caney, Amarra Villas and Jones Crossing, which could generate additional cash. Holden Hills remains a key source of embedded value, supported by third-party validation through a joint venture transaction.
However, key risks include significant 2026 debt maturities requiring refinancing, regulatory uncertainty surrounding Holden Hills development rights, continued weakness in multifamily markets, and declining recurring leasing income. Shares trade below book value but at a premium EV/sales multiple.
(You can read the full research report on Stratus here >>>)
Other noteworthy reports we are featuring today include BP p.l.c. (BP), PayPal Holdings, Inc. (PYPL) and Raymond James Financial, Inc. (RJF).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Palo Alto (PANW) Rides on Platform Consolidation
Featured Reports
Two-Sided Platform & Rich Partner Base Aids PayPal (PYPL)
Per the Zacks Analyst, PayPal gains from its two-sided platform, rich partner base and expanding efforts. However, a challenging macroeconomic and competitive environment remains a woe.
Acquisitions to Aid Raymond James' (RJF) Top Line Amid Cost Woes
Per the Zacks analyst, while Raymond James' efforts to expand through acquisitions and its global diversification efforts are expected to result in higher costs, these will likely drive the top line.
Symbotic Rides on Contracted Programs Amid High Customer Concentration
Per the Zacks Analyst, Symbotic benefits from a large contracted backlog, operational systems and a broader product roadmap. High customer concentration and project delays continues to bother.
Akamai (AKAM) Rides on Solid Demand for Cloud and Security Solutions
Per the Zacks analyst, strong demand for cloud infrastructure services to support AI workloads is expected to drive Akamai's top line. Continued growth in cybersecurity solutions is a positive.
Somnigroup (SGI) Benefits From Integration and Global Expansion
Per the Zacks analyst, Somnigroup is benefiting from Mattress Firm synergies, vertical integration and international growth, supporting earnings diversification as bedding demand recovers.
Microinverter, Energy Storage Expansion Drive Enphase Energy (ENPH)
Per the Zacks analyst, Enphase Energy's microinverter and energy storage expansion should support growth. New products and multiyear safe-harbor volumes will broaden its growth opportunities.
Innodata (INOD) Gains From Diversification, Timing Risks Linger
Per the Zacks analyst, broader Big Tech exposure and expanding AI capabilities support growth. However, project timing and concentrated revenues keep earnings visibility uneven.
New Upgrades
BP (BP) to Benefit From Key Upstream Project Pipeline
The Zacks analyst likes BP for its multi-year upstream project pipeline and structural cost actions, which should support stronger cash flow and returns.
Merit Medical (MMSI) Gains from Broad Product Portfolio, Global Growth
Per the Zacks analyst, Merit Medical's product launches, R&D investments and expanding global footprint are strengthening growth prospects, while WRAPSODY offers additional upside in renal therapies.
Creation of New Revenue Streams, Upbeat EBIT Outlook Aid Garrett (GTX)
Per the Zacks analyst, Garrett's efforts to extend its high-speed turbomachinery capabilities into power generation bode well for its top-line growth. An upbeat EBIT outlook also sparks optimism.
New Downgrades
UK Operations Weighs on Group 1 Automotive's (GPI) Profitability
Group 1's U.K. operations face EV mandates, inflation, forex volatility and intense competition, pressuring sales and margins and keeping the Zacks analyst bearish on GPI.
Weak Volumes and Core Brands Weigh on Boston Beer (SAM)
Per the Zacks analyst, Boston Beer faces weak depletion and shipment trends as Twisted Tea and Truly lose volume and share, keeping its 2026 outlook tilted toward the lower end of expectations.
Exposure to Stiff Competition, Strict Regulation Ail EverQuote (EVER)
Per the Zacks analyst, Stiff Competition for traffic and provider budgets keeps variable marketing margins volatile. Also, strict regulation raises compliance costs, which increase expenses.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Top Analyst Reports for Eli Lilly, Palo Alto Networks & Texas Instruments

Microchip Technology MCHP is strengthening its automotive connectivity portfolio through an open-standard display connectivity solution aimed at software-defined vehicles. Based on ASA Motion Link (ASA-ML) technology, the offering is designed to stream high-speed graphics and video from centralized vehicle computers to automotive displays while improving interoperability and reducing reliance on proprietary architectures. The solution is expected to expand MCHP’s opportunity across automotive infotainment, advanced driver-assistance systems (ADAS), digital cockpits and human-machine interfaces, improving competitive positioning against Texas Instruments TXN and Analog Devices ADI.
The opportunity comes as Microchip Technologies’ automotive business gains momentum. In the first quarter of fiscal 2027, automotive accounted for an estimated 15% of MCHP’s revenues, while sales from the automotive end market increased 29.3% year over year. The company indicated that the automotive market remains in the early stages of recovery, leaving room for further growth. Microchip already serves applications involving touch screens, graphical user interfaces, automotive safety, ADAS, networking and infotainment, making display connectivity a natural extension of its existing automotive footprint.
The open-standard push complements MCHP’s broader Total System Solution strategy. The company’s semiconductor portfolio spans microcontrollers, analog, interface, timing, security and wired-connectivity products. Microchip’s specialized microcontrollers address automotive, human-machine interface, security and wired-connectivity applications, while the analog portfolio includes Ethernet and other interface products. This breadth could allow Microchip to compete for multiple sockets within a software-defined vehicle rather than depend solely on a stand-alone display-connectivity chip.
Microchip Technologies’ broader capabilities could provide an additional competitive advantage. The company competes on performance, mixed-signal integration, low power consumption, reliability, security and functional safety. The company also highlights hardware-software compatibility, dependable delivery, time to market, total solution cost and easy-to-adopt reference designs as important competitive factors. These capabilities are relevant as automakers integrate displays, networking, control and security functions into increasingly centralized vehicle architectures. An anchor connectivity design win could therefore create opportunities for complementary analog, security and control products, potentially increasing Microchip’s semiconductor content per vehicle.
MCHP Faces Tough Competition
Texas Instruments presents a strong competitive benchmark, supported by its broad Analog and Embedded Processing portfolios, accelerating automotive demand and strong capacity position. TXN’s automotive revenues increased in the mid-teens year over year and upper single digits sequentially in the second quarter of 2026. TXN also said capacity and inventory investments are helping it respond to accelerating customer demand. Management has highlighted significant generation-over-generation content growth and opportunities to gain share as customers adopt new systems. Competitive lead times and available capacity could also help TXN win new designs when competitors face supply constraints.
Analog Devices represents another formidable challenge, particularly given its strength in automotive applications such as ADAS and infotainment. Automotive accounted for 25% of ADI’s third-quarter fiscal 2026 revenues, with sales rising 16% year over year and 14% sequentially. The company linked the growth to higher content and share positions, with strength across next-generation ADAS, infotainment systems and electric powertrains. ADI sees autonomous mobility as part of the second generation of AI, where real-time sensing, inference and responsiveness become increasingly important. The company’s higher automotive content and share positions could make it harder for MCHP to capture display-connectivity design wins, despite the appeal of Microchip’s open-standard approach.
MCHP’s Share Price Performance, Valuation & Estimates
Shares of Microchip have gained 15.1% year to date compared with the broader Zacks Computer and Technology sector’s 18.5% growth.
MCHP Stock’s Price Performance
MCHP stock is trading at a discount, with a forward 12-month price-to-earnings ratio of 18.33 compared with the broader sector’s 20.73. Microchip has a Value Score of D.
MCHP’s Valuation
The Zacks Consensus Estimate for Microchip’s earnings is currently pegged at 90 cents per share, up by a cent over the past 30 days, suggesting approximately 157.14% growth.
Microchip Technology Incorporated Price and Consensus
Microchip currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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This article originally published on Zacks Investment Research (zacks.com).

MCHP Rides on Open-Standard Connectivity: Can It Beat ADI & TXN?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares Global Tech ETF (Symbol: IXN) where we have detected an approximate $285.8 million dollar outflow -- that's a 2.9% decrease week over week (from 68,500,000 to 66,500,000). Among the largest underlying components of IXN, in trading today Texas Instruments Inc. (Symbol: TXN) is up about 0.4%, Amphenol Corp. (Symbol: APH) is up about 0.3%, and Analog Devices Inc (Symbol: ADI) is up by about 0.7%. For a complete list of holdings, visit the IXN Holdings page » The chart below shows the one year price performance of IXN, versus its 200 day moving average:
Looking at the chart above, IXN's low point in its 52 week range is $95.11 per share, with $149.83 as the 52 week high point — that compares with a last trade of $143.18. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further IXN Research:

Noteworthy ETF Outflows: IXN, TXN, APH, ADI

Analog Devices ADI shares have lost 5.6% in the past month compared with the Zacks Semiconductor - Analog and Mixed industry’s decline of 6.1%.
ADI is trading at a forward price-to-sales multiple of 9.76X, much above the industry’s 7.74x. This premium valuation is further supported by the Zacks Value Score of D.
ADI Forward 12-Month (P/S) Performance Chart
Given the dynamics, investors are wondering if it is the right time to invest in ADI stock. Let’s delve deeper into the fundamentals and financials to know if it is the right time to buy, sell or retain ADI stock.
ADI Benefits From Industrial and Data Center Strength
ADI’s data center and power businesses are emerging as major growth drivers as AI infrastructure requires significantly higher power density, efficiency and monitoring capabilities. The company is benefiting from the shift toward 800V DC power distribution, driving increasing demand for 800V-to-intermediate power conversion technologies. ADI’s acquisition of Empower Semiconductor further strengthens its vertical power capabilities by enabling power delivery closer to the processor package.
Optical connectivity represents another important growth opportunity as AI data centers transition toward higher-speed architectures. ADI supplies timing, power management, data conversion, monitoring and control technologies for optical systems as customers move from 800 gigabits to 3.2 terabits per second. The company expects optical circuit switching revenues to approximately double in fiscal 2026, with similar growth targeted for fiscal 2027.
Co-packaged optics is also expanding ADI’s opportunity as rising thermal and serviceability complexity increases the need for precision control technologies. Analog Devices’ Industrial segment accounted for 49% of fiscal third-quarter 2026 revenues, rising 53% year over year and 10% sequentially to $1.97 billion. With continued investment, ADI is benefiting from higher revenues, improved utilization, favorable product mix and pricing actions.
ADI’s third-quarter adjusted gross margin increased 330 basis points year over year to 72.5%, while adjusted operating margin expanded 780 basis points to 50.0%. Adjusted operating expenses were $906.8 million, or 22.5% of revenue, compared with 27.1% a year earlier. Management expects further margin improvement in the fourth quarter, supported by favorable mix, higher fixed-cost absorption and pricing actions.
ADI Sustains Margins Despite Competitive Pressure
Competition in the high-performance analog semiconductor market remains intense, with Texas Instruments identified as a key rival given its manufacturing scale. ADI retains leadership in converters, although competitors continue to compete across multiple analog categories. ADI competes with Texas Instruments TXN, STMicroelectronics STM and NXP Semiconductors NXPI.
Texas Instruments competes across analog, digital and mixed-signal solutions, including precision sensing and power-management products for consumer electronics. NXP is a major provider of analog and mixed-signal semiconductor solutions for mobile, connectivity and consumer applications, including front-end, power-management and mixed-signal products, particularly in the mobile and IoT markets.
Texas Instruments also targets the automotive market through analog sensors, power ICs, in-vehicle networking, signal-chain products, and driver-assistance electronics. STMicroelectronics competes with ADI through products, including MEMS and inertial sensors, analog front ends, interface ICs and microcontrollers. Competition from these major semiconductor players has prompted ADI to increase research and development and sales and marketing investments at double-digit rates. Strong revenue growth has helped the company maintain its margins.
The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $12.96 per share, implying 66.4% year-over-year growth. The consensus estimate has also moved higher over the past 30 days.
Conclusion: Buy ADI Stock Now
Analog Devices is benefiting from a broad-based recovery as Industrial demand improves and AI-related data center activity expands across optical and power applications. Long-cycle exposure to automation, test, aerospace and defense, energy systems and vehicle electrification supports durable growth. Sticky design wins and a flexible hybrid manufacturing model help capture demand while keeping channel inventories lean. Based on these factors, we recommend investors consider this Zacks Rank #2 (Buy) stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ADI Declines 5.6% in a Month: Time to Buy, Sell or Hold the Stock?

Semiconductor stocks have had an impressive year so far after a stellar 2025. Higher demand, driven by continued enthusiasm surrounding artificial intelligence (AI), has made chip stocks one of the most lucrative buys.
Although concerns grew a few months back about the potential of AI stocks given the massive investments being made by big tech companies, the fears have gradually eased after robust earnings from AI giants reinstalled investors’ confidence.
Given the upbeat sentiment, it would be ideal to invest in semiconductor stocks, such as Analog Devices ADI, Taiwan Semiconductor Manufacturing Company Limited TSM, Texas Instruments TXN, NVIDIA Corporation NVDA and ACM Research, Inc. ACMR, which have great potential for growth this year.
Semiconductor Market Continues to Expand
Global semiconductor sales totaled $146.8 billion in July, up 6.4% sequentially from June’s total of $137.9 billion, the Semiconductor Industry Association (“SIA”) reported last week. Year over year, semiconductor sales surged 135.1% in July from last year’s total of $62.5 billion.
John Neuffer, SIA president and CEO, said, “The global semiconductor market grew on a month-to-month basis for the 17th consecutive month in July, and the industry has already reached its highest-ever annual global sales total just seven months into the year.”
Global semiconductor sales have now grown for 17 straight months. Chip sales have also grown in all seven months this year.
AI-related semiconductor stocks came under pressure a couple of months back, as concerns grew over the potential of AI and whether the rapid growth can be sustained. This saw investors rotating out of AI-related chip stocks and taking refuge in more defensive assets.
However, major AI-related semiconductor companies reported robust earnings and issued impressive forecasts last quarter, which have fizzled out the fears, sending chip stocks on a rally once again.
Semiconductor companies have played a major role in driving the broader market’s gains in recent years. The robust jump in July follows a stellar first and second quarter for chip stocks. Worldwide semiconductor sales totaled $403.3 billion in the second quarter of 2026 and $298.5 billion in the first quarter, surging 33.1% and 25% sequentially, respectively.
Semiconductors have become an essential part of almost every modern and emerging technology, powering developments in areas such as the Internet of Things (IoT), 6G connectivity and artificial intelligence.
Rising demand from the automotive industry has also helped drive chip sales higher. At the same time, the AI sector remains in the early stages of its growth, prompting major technology companies to invest billions of dollars in AI research, development and infrastructure.
With these companies continuing to ramp up spending on AI infrastructure, investor sentiment toward semiconductor stocks has remained strong.
5 Semiconductor Stocks With Upside
Analog Devices
Analog Devices is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal and digital signal processing (“DSP”) integrated circuits. ADI’s product line comprises amplifiers and comparators; analog-to-digital converters; digital-to-analog converters; video encoders and decoders; embedded processing products and DSPs; MEMS and temperature sensors; RF/IF components and converters; power and thermal management ICs, audio/video converters, amplifiers, CODECs, filters and processors. Analog Devices also offers analog, digital and RF switches and multiplexers; analog microcontrollers; clock and timing products.
Analog Devices’ expected earnings growth rate for the current year is 66.4%. The Zacks Consensus Estimate for current-year earnings has improved 5.2% over the past 60 days. ADI currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited’s goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.
Taiwan Semiconductor Manufacturing Company Limited’s expected earnings growth rate for the current year is 55.1%. The Zacks Consensus Estimate for current-year earnings has improved 7.6% over the past 60 days. TSM presently carries a Zacks Rank #1.
Texas Instruments
Texas Instruments is an original equipment manufacturer of analog, mixed-signal and digital signal-processing integrated circuits. TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia and Europe. Management strategy has been to build assets that would be fully utilized through their lifetimes and outsource any excess demand in peak situations to outside foundries.
Texas Instruments’ expected earnings growth rate for the current year is 55.1%. The Zacks Consensus Estimate for current-year earnings has improved 10.3% over the past 60 days. Currently, TXN carries a Zacks Rank #2.
NVIDIA Corporation
NVIDIA Corporation is the worldwide leader in visual computing technologies and the inventor of the graphics processing unit, or GPU. Over the years, NVDA’s focus has evolved from PC graphics to AI-based solutions that now support high-performance computing, gaming and virtual reality platforms.
NVIDIA has an expected earnings growth rate of 93.3% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 4.2% over the last 60 days. NVDA currently has a Zacks Rank #1.
ACM Research
ACM Research, Inc. develops, manufactures and sells single-wafer wet cleaning equipment, which semiconductor manufacturers can use in numerous manufacturing steps to remove particles, contaminants and other random defects. ACMR is headquartered in Fremont, CA.
ACM Research’s expected earnings growth rate for the current year is 27.3%. The Zacks Consensus Estimate for current-year earnings has improved 49.6% over the past 60 days. ACMR sports a Zacks Rank #1 at present.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Buy These 5 Semiconductor Stocks as Sales Skyrocket on Solid AI Demand

NVIDIA Corporation NVDA made a major move in artificial intelligence (AI) on Thursday, agreeing to acquire Hugging Face for $12.9 billion. The transaction ranks among Nvidia’s largest acquisitions and strengthens its position beyond AI chips and into the rapidly expanding open-source AI ecosystem. Nvidia’s shares gained 1.8% in the session, following the announcement.
Hugging Face Strengthens Nvidia’s AI Ecosystem
Hugging Face operates a widely used platform where developers and companies can access, share and deploy open-source AI models, datasets and applications. The platform has more than 18 million developers, researchers and creators, over 3 million models and more than 200,000 companies using its services. Nvidia said Hugging Face will remain an open platform, allowing developers to choose their preferred models, frameworks, cloud providers and computing hardware.
The deal represents a strategic effort by Nvidia to strengthen its AI ecosystem as major customers, including cloud and technology giants, increasingly develop their own AI chips. Open-source models can also offer lower-cost alternatives to proprietary AI systems, potentially accelerating adoption among businesses and developers. By controlling a major AI development platform, Nvidia could create additional demand for its computing infrastructure while broadening its customer base.
Deal Expected to Close in 2027
Under the agreement, approximately $11.9 billion will be paid to Hugging Face shareholders, while Nvidia will provide up to $1 billion in equity-based retention incentives for employees. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and other customary conditions.
Comparison With Peers
Nvidia, which currently boasts a Zacks Rank #1 (Strong Buy), is part of the Zacks Semiconductor - General industry. NVDA’s shares have surged 22.5% year to date compared with 26% growth for the industry. Intel Corporation INTC and Texas Instruments Incorporated TXN, two of NVDA’s peers from the same industry, have gained 148.5% and 46.3% in the same period, respectively. While INTC carries a #3 (Hold), TXN has a #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom Line
Nvidia’s Hugging Face acquisition signals an aggressive push to dominate not only AI hardware but also the software and developer ecosystem powering the next generation of AI.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Nvidia's $13 Billion Hugging Face Deal Expands Open-Source AI

Texas Instruments Incorporated TXN has emerged as one of the better-performing semiconductor stocks this year, but that outperformance comes with a catch — investors are now paying a premium for the company's growth prospects.
Texas Instruments currently trades at around 26.97 times forward 12-month earnings, well above the 20.22 times for the broader Zacks Computer and Technology sector. The stock also carries a Value Score of D, signaling that valuation is clearly stretched.
Texas Instruments Forward 12-Month P/E Ratio
TXN looks expensive compared with several semiconductor companies, including Amtech Systems, Inc. ASYS, NVIDIA Corporation NVDA and Analog Devices, Inc. ADI. Amtech Systems trades at 12.25 times forward 12-month earnings, while NVIDIA and Analog Devices trade at 17.44 times and 22.49 times, respectively.
The premium is harder to ignore after TXN shares have gained 46.8% year to date compared with a 15.5% rise for the sector. Semiconductor peers, Amtech Systems, NVIDIA and Analog Devices, have gained 16.3%, 20.2% and 30.9%, respectively.
Texas Instruments YTD Price Return Performance
Given the sharp rally, investors may question whether the stock has already priced in much of its future growth.
Yet there is a strong argument for staying bullish. Texas Instruments' earnings are accelerating, exposure to AI infrastructure is expanding, and manufacturing investments could strengthen its competitive position. These factors suggest that the company's valuation deserves a closer look rather than being dismissed simply because it is above the sector average.
Strong Financial Results Support TXN’s Premium Valuation
Texas Instruments' recent financial performance provides an important reason for investors to accept a higher valuation. Its second-quarter 2026 revenues rose 23% year over year to $5.46 billion, while non-GAAP earnings per share (EPS) jumped 52% to $2.14. The stronger earnings growth is particularly encouraging because it shows that improving demand is translating into meaningful bottom-line gains.
Texas Instruments expects this momentum to continue. Third-quarter revenue guidance of $5.65-$6.15 billion represents roughly 25% year-over-year growth at the midpoint. The midpoint of the EPS guidance, at $2.40, implies nearly 62% year-over-year growth. The guidance reflects healthy demand across several markets, particularly those tied to AI infrastructure.
Wall Street shares the same optimism. The Zacks Consensus Estimate calls for continued revenue and earnings growth in both 2026 and 2027, reinforcing confidence that the company's growth story is far from over.
Image Source: Zacks Investment Research
AI Infrastructure Gives TXN an Attractive Growth Opportunity
Texas Instruments is not competing with NVIDIA or AMD in AI accelerators, but it is quietly becoming an important beneficiary of the AI boom. The company supplies analog and embedded chips that perform critical functions inside AI infrastructure.
Its analog and embedded chips manage power, process signals, support connectivity and control equipment used throughout data centers and other industrial systems. As AI servers become more power-hungry, the amount of supporting semiconductor content required also increases.
Instead of competing in the crowded AI processor market, the company is benefiting from the broader AI infrastructure buildout. This positions Texas Instruments to capture AI spending regardless of which GPU (graphics processing unit) maker ultimately dominates the data center market.
The numbers already reflect this trend. Texas Instruments' data center business reached an annual revenue run rate of approximately $1.2 billion in 2025, growing more than 50% year over year. During the second quarter of 2026, data center revenues doubled from the prior-year quarter and increased 20% sequentially.
Such strong growth suggests AI infrastructure could become an increasingly important revenue driver over the coming years. If AI data center investment remains strong, TXN's exposure could expand without requiring the company to compete directly in the highly competitive accelerator market.
Manufacturing Investments Could Strengthen TXN’s Moat
Texas Instruments is also investing heavily to bring more manufacturing in-house. Unlike many semiconductor companies that depend heavily on third-party foundries, TXN plans to produce more than 95% of its wafers internally by 2030.
While this strategy requires substantial capital spending, it could provide greater control over supply and improve cost efficiency. That could become an important competitive advantage as semiconductor demand grows.
Government support should also help reduce the financial burden. Texas Instruments expects to receive up to $1.6 billion in direct CHIPS Act grant and another $6-$8 billion from the U.S. Treasury Department's Investment Tax Credit. Including both, total lifetime benefits are estimated between $7.5 billion and $9.5 billion. These incentives should reduce expansion costs and boost profitability over the long run.
TXN’s Strong Cash Flow Adds Support to the Investment Case
Texas Instruments' cash generation further strengthens its ability to invest while returning capital to shareholders. Over the past 12 months, the company generated $8.67 billion in operating cash flow and $6.53 billion in free cash flow. It ended the second quarter with $7 billion in cash and short-term investments.
The company also continues to reward investors. During the first half of 2026, TXN returned nearly $1.45 billion through dividends and share repurchases. Over the past year, total shareholder returns approached $6 billion.
The strong cash position allows Texas Instruments to invest aggressively in manufacturing expansion while continuing to reward shareholders.
Final Thoughts: Is TXN’s Premium Valuation Justified?
Premium valuations are often justified when a company consistently delivers earnings growth, generates strong cash flow and maintains durable competitive advantages.
Texas Instruments fits that profile. The company continues to benefit from expanding AI infrastructure spending, delivers consistent earnings growth, generates substantial free cash flow, maintains a healthy balance sheet and has a long track record of rewarding shareholders through dividends and share buybacks. Those strengths make its premium valuation easier to justify.
Currently, Texas Instruments carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Should You Buy Texas Instruments Stock Despite Its Premium Valuation?

The S&P 500 Index ($SPX) (SPY) is up by +0.50% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.79%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up by +0.17%. E-mini S&P futures (ESU26) are up +0.49%, and September E-mini Nasdaq futures (NQU26) are up +0.15%.
Stock index futures recovered from overnight losses and are moving higher today as a retreat in crude oil prices knocked bond yields lower. Crude oil prices gave up an overnight advance and turned lower today when US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday, easing supply concerns. That knocked the 10-year T-note yield down -1 bp to 4.79%, benefiting stocks. Gains in stocks accelerated on dovish comments for New York Fed President Williams, who said inflation is continuing to trend down.
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Today’s US economic news was mixed for stocks after July factory orders rose more than expected, but the Aug ADP employment change rose less than expected.
Stock index futures initially moved lower in overnight trade as US-Iran hostilities pushed crude oil prices to a 6-week high and the 10-year T-note yield up to a 2.75-year high of 4.82%. Stocks were under pressure as global bond yields stayed elevated on US-Iran hostilities, which extended crude oil’s advance and threatened to worsen the inflation outlook.
The global bond sell-off generally continued today, pushing bond yields to multi-year highs and undercutting stocks. The UK 10-year gilt yield surged to a 19-year high of 5.29%, the German 10-year bund yield jumped to a 15-year high of 3.39%, the Japanese 10-year JGB bond yield surged to a 30-year high of 3.04%, and the 10-year T-note yield rose to a 2.75-year high of 4.82%.
US MBA mortgage applications rose +0.8% in the week ended August 28, with the purchase mortgage sub-index up +2.2% and the refinancing mortgage sub-index down -1.1%. The average 30-year fixed-rate mortgage rose +1 bp to 6.79% from 6.78% in the prior week.
The US Aug ADP employment change rose by +38,000, showing a slightly weaker labor market than expectations of +47,000.
US July factory orders rose +0.9% m/m, stronger than expectations of +0.7% m/m. Also, July factory orders ex-transportation rose +0.6% m/m, stronger than expectations of +0.4% m/m.
New York Fed President John Williams said, "The data recently has been encouraging. I am actually seeing the trend in inflation moving slowly down as some of the effects of the tariffs move into the rearview mirror."
Oct WTI crude oil prices (CLV26) fell from a 6-week high today and turned lower as supply concerns abated after US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday. Crude prices initially rallied in overnight trade as fighting intensified between the US and Iran. The US carried out a second round of strikes in three days overnight, targeting radar systems and mine-laying capabilities along Iran's southern coast. Iran retaliated with drone and missile attacks on US bases across the Middle East. Also, Axios reported that the US attacked two Iranian tankers anchored off Iran’s north coast under a new “tanker for tanker” policy approved by President Trump to further deter Iranian attacks on tankers that move through the Strait of Hormuz.
Q2 earnings results are a bullish factor for stocks. The S&P 500 is tracking for earnings growth of almost 32% in Q2, well above projections of +23%, and nearly four times the average earnings growth rate outside of the Covid period since Q4 of 2013, according to Bloomberg Intelligence. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive, with 86% of the 489 S&P 500 companies that have reported Q2 earnings beating estimates, according to Bloomberg data.
The markets are discounting a 67% chance of a +25 bp rate hike at the next FOMC meeting on September 15-16.
Overseas stock markets are lower today. The Euro Stoxx 50 dropped to a 1-month low and is down -0.01%. China's Shanghai Composite closed down -0.97%. Japan's Nikkei-225 Stock Average fell to a 4-week low and closed down -2.85%.
Interest Rates
December 10-year T-notes (ZNZ6) are up by +2 ticks today. The 10-year T-note yield is down -0.4 bp to 4.794%. T-notes recovered from a 1.75-year nearest-futures low today and turned higher, and the 10-year T-note yield fell from a 2.75-year high of 4.816% and moved lower. Short covering emerged and pushed T-notes higher after WTI crude fell from a 6-week high and turned lower, easing inflation expectations. T-notes remained slightly higher after the Aug ADP employment change rose less than expected, and after New York Fed President Williams said inflation is continuing to trend down.
European government bond yields are moving higher today. The 10-year German bund yield climbed to a 15-year high of 3.395% and is up +3.3 bp to 3.376%. The 10-year UK gilt yield jumped to a 19-year high of 5.289% and is up +1.4 bp to 5.234%.
ECB Governing Council member and Bundesbank President Joachim Nagel warned that "inflation isn't close to our medium-term target" and said, "markets are pricing in a probability of more than 95% that we'll raise interest rates at our September meeting, and I'd say that the markets have a rather good understanding of how we're likely to respond at this stage."
Markets are discounting a 99% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.
US Stock Movers
Strength in chipmakers today is providing support to the broader market. Nvidia (NVDA) is up more than +3% to lead gainers in the Nasdaq 100 and Dow Jones Industrials. Also, NXP Semiconductors (NXPI) is up more than +2%, and Microchip Technology (MCHP), Analog Devices (ADI), Qualcomm (QCOM), and Texas Instruments (TXN) are up more than 1%.
Airlines and cruise line operators are moving higher today after crude oil prices turned lower, a positive factor for the companies’ profitability. United Airlines Holdings (UAL) is up more than +4%, and Alaska Air Group (ALK) is up more than +3%. Also, American Airlines Group (AAL), Delta Air Lines (DAL), Southwest Airlines (LUV), and Norwegian Cruise Line Holdings (NCLH) are up more than +2%. In addition, Carnival (CCL) and Royal Caribbean Cruises (RCL) are up more than +1%.
Palo Alto Networks (PANW) is down more than -7% to lead cybersecurity stocks lower and lead losers in the Nasdaq 100 after reporting Q4 subscription and support revenue of $2.67 billion, below the consensus of $2.68 billion. Also, CrowdStrike Holdings (CRWD) and Fortinet (FTNT) are down more than -4%, and Okta (OKTA) is down more than +3%. In addition, Cloudflare (NET) and SentinelOne (S) are down more tan -2%, and Zscaler (ZS) is down more than -1%.
Gitlab (GTLB) is up more than +16% after boosting its 2027 revenue forecast to $1.13 billion from a previous forecast of $1.11 billion to $1.12 billion, better than the consensus of $1.12 billion.
SiriusXM (SIRI) is up more than +5% after Deutsche Bank upgraded the stock to buy from hold with a price target of $45.
Dell Technologies (DELL) is up more than +4% after reporting Q2 total net revenue of $46.97 billion, well above the consensus of $44,78 billion, and raising its 2027 revenue forecast to $192 billion from a previous forecast of $165 billion to $169 billion, stronger than the consensus of $173.76 billion.
Brown-Forman (BF.B) is up more than +3% after reporting a Q1 gross margin of 60.2%, better than the consensus of 58.6%.
Credo Technology (CRDO) is down more than -18% despite reporting better-than-expected Q EPS as the company failed to exceed its Q1 adjusted gross margin estimate of 68%.
MongoDB (MDB) is down more than -9% despite reporting better-than-expected Q2 EPS as revenue growth in the company’s Atlas product didn’t accelerate in Q2 versus Q1.
PG&E (PCG) is down more than -8% to lead losers in the S&P 500, and Edison International (EIX) is down more than -6% after analysts said it is unlikely that California legislators will hold a special session to pass a wildfire liability bill favorable to utilities.
G-III Apparel Group Ltd (GIII) is down more than -7% after reporting Q2 net sales of $554.1 million, weaker than the consensus of $570.3 million, and forecasting Q3 net sales of about $870 million, below the consensus of $899 million.
Earnings Reports (9/2/2026)
Broadcom Inc (AVGO), Brown-Forman Corp (BF/B), Five Below Inc (FIVE), Hewlett Packard Enterprise Co (HPE), NetApp Inc (NTAP), Ollie's Bargain Outlet Holding (OLLI), PVH Corp (PVH), Snowflake Inc (SNOW).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Texas Instruments Incorporated

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