Stock Analysis | Texas Instruments Outlook - A Weak Technical Picture Amid Mixed Analyst Sentiment

Market Snapshot

Headline Takeaway: Texas Instruments (TXN) is currently showing a positive price trend of 6.74%, but is facing a weak technical outlook and mixed analyst sentiment.

News Highlights

Recent headlines suggest growing strategic and geopolitical focus on the semiconductor industry. A McKinsey report highlights the potential impact of U.S. tariffs on semiconductor supply chains, while Japan announced plans to propose increased cooperation with the U.S. on rare earths and semiconductors. These developments could affect TXN, especially given its global manufacturing footprint.

Analyst Views & Fundamentals

Analyst ratings are mixed, with 7 "Neutral," 7 "Strong Buy," and 4 "Buy" calls in the last 20 days. The simple average rating is 4.00, while the performance-weighted rating is 2.79. This disparity suggests limited consensus among analysts and highlights that some institutions are underperforming in their historical accuracy.

The stock is facing a price rise of 6.74%, but this trend is not fully aligned with the market expectations, as indicated by the mismatch between the current rally and the weighted average analyst rating.

Key fundamental values and model scores (internal diagnostic scores 0-10):

• Net profit attributable to parent company shareholders / Net profit: 99.47% (Score: 1)
• Net cash flow from operating activities (YoY growth): 4.68% (Score: 2)
• Interest coverage ratio: 11.55% (Score: 3)
• Net profit attributable to parent company shareholders (YoY growth): 10.81% (Score: 2)
• Cash-UP: 0.86 (Score: 3)
• GPOA: 7.37% (Score: 3)
• CFOA: 5.32% (Score: 3)

While these fundamentals show some strength, the internal diagnostic scores remain relatively modest, indicating room for improvement in key financial metrics.

Money-Flow Trends

Texas Instruments has seen mixed capital flow trends. Extra-large investors are showing a negative trend, while medium and large investors are positive. Big-money flows are skewed toward caution, with an overall inflow ratio of 0.46. In contrast, retail investors (small accounts) are also showing a negative trend, with an inflow ratio of 0.50. This mix suggests a cautious stance from both institutional and small investors, possibly reflecting uncertainty about the stock’s near-term direction.

Key Technical Signals

The technical outlook for TXN is weak, with an internal diagnostic score of 1.89. The key indicators to watch include:

• Williams %R Overbought: Score: 2.77 (internal diagnostic score), indicating a neutral rise in momentum
• RSI Overbought: Score: 1 (internal diagnostic score), signaling a biased bearish trend

Over the past five days, both indicators have appeared on the chart, with RSI Overbought appearing twice and Williams %R Overbought persisting across most days. This suggests overbought conditions are not yet resolved and could lead to a correction.

Technical indicators show clear bearish dominance (2 vs. 0 bullish), and there are clear risks of a downward move. Traders and investors should remain cautious and watch for further bearish signals or pullbacks.

Conclusion

Texas Instruments is currently showing mixed signals — a positive price move and decent fundamentals, but weak technical indicators and divergent analyst sentiment. The internal diagnostic scores suggest caution is warranted, especially from a technical perspective. We recommend watching for a pull-back or better entry levels before taking a long position. Investors should also monitor the upcoming earnings reports for insight into whether recent gains are supported by strong operational performance.