Texas Instruments (TXN) Stock Forecast & Price Target

Texas Instruments has demonstrated robust growth across its core Industrial and Automotive segments, with both divisions projected to contribute 33% of the company's revenue by 2025 and exhibiting strong sales performance in Q4. The newly-formed Data Center segment has shown exceptional momentum, achieving nearly 70% year-over-year growth in Q4 2025 and accounting for approximately 9% of total sales, indicating a successful expansion into an increasingly important market. Additionally, the company's financial health is underscored by substantial cash flow from operations of $7.2 billion and free cash flow representing 17% of revenue, showcasing a solid foundation for future growth initiatives.

Texas Instruments has experienced a decrease in gross margins to 55.9%, reflecting a decline of 150 basis points quarter-over-quarter and 124 basis points year-over-year, indicating potential challenges in maintaining profitability. Revenue from its Personal Electronics segment has notably contracted in both sequenced and annual comparisons, impacted by the cessation of Chinese subsidies and broader macroeconomic uncertainties that pose risks to future sales. Furthermore, the company's mixed performance across its segments, with declines in key areas such as Analog and Embedded Processing, suggests underlying weaknesses that could hinder growth prospects for the firm.