Texas Instruments Q2 Earnings Beat Estimates but Stock Falls 0.03% to 58th in Trading Volume Rank

Texas Instruments (TXN) closed August 21 with a 0.03% decline, trading at a volume of $1.02 billion, a 36.84% drop from the previous day, ranking 58th in market activity. The stock underperformed broader indices amid sector rotation toward defensive assets.

The chipmaker reported Q2 2025 earnings of $1.41 per share, surpassing estimates by 6.82%, with revenue rising 16% year-over-year to $4.45 billion. Its Analog segment drove growth, contributing 77.6% of total revenue and outpacing guidance by 3.23%. Embedded Processing and Other segments also showed double-digit revenue growth, while operating profit increased 25.2% to $1.56 billion. The company reiterated Q3 2025 revenue guidance of $4.45–$4.8 billion and reaffirmed a 12–13% effective tax rate outlook.

Despite strong financials, TXN faces headwinds including geopolitical risks in China (20% of 2024 revenue) and slower-than-expected recovery in the automotive market. The firm’s strategy to manufacture 95% of wafers internally by 2030 aims to mitigate supply chain vulnerabilities but could delay flexibility. Analysts highlight its $1.6 billion CHIPS Act funding as a tailwind, though valuation metrics remain under pressure compared to peers.

A strategy of holding the top 500 stocks by daily trading volume from 2022 to 2025 generated $2,550 in total profit, representing a 12.5% return on initial investment. While short-term volume trends showed predictive value, the approach’s volatility underscores its limited suitability for long-term capital deployment.