Texas Instruments Trading Volume Surges to 57th Position Despite Stock Price Decline

On July 16, 2025, Texas Instruments (TXN) experienced a significant trading day with a volume of 13.82 billion, marking a 42.88% increase from the previous day. This surge placed TXN at the 57th position in terms of trading volume for the day. However, the stock price of TXN declined by 0.79%, marking the third consecutive day of decline, with a total decrease of 2.08% over the past three days.

Texas Instruments' recent performance reflects broader challenges within the semiconductor sector. The company's stock price plummeted to $212.63, shedding $3.43 from its peak amid sector-wide pressures. Analysts are divided, with Cowen upgrading the stock to a Buy rating while JPMorgan slashed its price target to $195. Institutional buying has surged, with hedge funds like Jacobson & Schmitt increasing their stakes. Technical indicators, such as a Bearish Engulfing pattern, suggest that the stock is testing critical support levels.

The sell-off is attributed to a disconnect between Texas Instruments' robust 30% return on equity (ROE) and its dividend-heavy capital strategy. The company retains only 36% of its profits for reinvestment, which analysts argue stifles earnings growth despite strong returns. This contrasts with sector peers that have lower ROE but faster growth trajectories. Additionally, JPMorgan's price target downgrade, citing macro uncertainty, and a Bearish Engulfing candle pattern on charts amplify near-term pessimism.

Texas Instruments' slump mirrors broader semiconductor sector weakness, with sector leader Analog Devices (ADI) also experiencing declines. Geopolitical trade barriers and China's chip localization push continue to weigh on supply chains. While TXN's industrial exposure offers some resilience, its dividend-heavy model underperforms growth-oriented peers like NVIDIA, which thrives on AI-driven demand. The sector's 3.1% compound annual growth rate (CAGR) for analog semiconductors provides context, but TXN's decline exceeds the industry's average drop.

Wells Fargo has increased its price target for Texas Instruments from $190 to $215 while maintaining an Equal Weight rating on the stock. Deutsche Bank analyst Ross Seymore has also adjusted the price target for TXN from $170 to $190. These adjustments come as the company faces a gloomy outlook due to trade and political tensions, which have led to uncertainty about growth in 2026. Despite these challenges, Texas Instruments' fundamentals remain sturdy, and the stock's performance will hinge on whether its dividend allure outweighs growth concerns.