Texas Instruments (NASDAQ:TXN) snapped seven straight sessions of decline on Friday. It ended 0.34% higher at $187.93.
The stock has been on a downward trajectory since August 27, when it closed 0.25% lower at $205.47. TXN was further pressured on Thursday after CFO Rafael Lizardi cautioned that semiconductor demand recovery isn’t rebounding as quickly as hoped. It plunged 4.32% to close at $187.29.
Between August 27 and September 4, the stock lost nearly 9%. On a YTD basis, the stock lagged behind the broader markets with almost a flat movement against the S&P500’s nearly 10% rise.
Looking at Seeking Alpha’s quant rating, Texas Instruments has been rated Hold with a score of 2.98 out of 5. The company has been graded A for profitability, but is dragged down by a D+ grade for growth. Seeking Alpha analysts echoed similar sentiments and issued a Hold call for the stock. However, Wall Street analysts were rather optimistic, rating TXN Buy.
The Alpha Analyst rated the stock Hold. They were bullish about the stock’s defensive positioning, supported by a rebound in analog and embedded chips, but expressed concerns over its high valuation. Tariff risks, shrinking margins, and high debt weigh on TXN’s premium valuation, the analyst said.
However, they argued that TXN is a decent diversification against tech cycles that impact other big semiconductor names.
“I still maintain a long-term Hold for TXN on the basis of its niche sticky demand and innovation focus. However, the short-term caution arises from tariff fears and environments that support Chinese chipmakers with subsidies against the steep tariffs on TXN, making it either less competitive or less margin-friendly,” the analyst wrote.