Texas Instruments: Rosenblatt maintains Buy, PT raised to $245 from $245.

Texas Instruments: Rosenblatt maintains Buy, PT raised to $245 from $245.

Texas Instruments (TXN) shares experienced a significant drop in extended trading on Tuesday, July 2, 2025, following the company's announcement of a soft profit forecast for the third quarter of fiscal year 2025. The semiconductor and electronics manufacturer reported earnings expectations of $1.36 to $1.60 per share, which fell short of the consensus estimate from Visible Alpha [1].

The company's revenue outlook for the third quarter was $4.45 billion to $4.8 billion, aligning closely with Street estimates. Despite this, Texas Instruments' stock dropped over 8% in extended trading, marking a substantial decline from its year-to-date performance, which had seen the stock rise by nearly 15% through Tuesday's close [1].

For the second quarter, Texas Instruments reported revenue of $4.45 billion, an increase of 16% year-over-year, and net income of $1.3 billion, or $1.41 per share, up from $1.13 billion and $1.22 per share, respectively, in the year-ago quarter. Both figures exceeded analyst consensus estimates [1].

The company's focus on analog and embedded devices continues to drive growth, with projections of generating approximately $7 per share in free cash flow. Analysts at TD Cowen have set a price target of $245 for Texas Instruments, suggesting a potential 13.5% upside from current levels [2]. This optimism is supported by the company's robust U.S. operations, which are expected to mitigate trade-related challenges.

Despite a consensus analyst price target of $197.44 per share, indicating a potential 9% downside, some forecasts are even more bullish, with targets reaching up to $260 per share. This suggests a possible upside of over 20%, highlighting the positive sentiment surrounding Texas Instruments' recent performance and future prospects [2].

Texas Instruments has announced plans to invest over $60 billion in U.S. chip production, including on seven facilities in Texas and Utah. The company's semiconductors are used in a wide variety of electronic devices, including smartphones, vehicles, and satellites, with notable clients such as Apple (AAPL), Ford (F), Nvidia (NVDA), SpaceX, and Medtronic (MDT) [1].

References:
[1] https://www.investopedia.com/texas-instruments-earnings-q2-fy2025-11776588
[2] https://www.indexbox.io/blog/texas-instruments-a-rising-star-on-wall-street/