Texas Instruments Inc. (TXN) is experiencing a surge in bullish sentiment, with analysts predicting significant upside for the semiconductor giant. Citigroup has increased its price target for the stock from $200 to $235, upgrading the stock from Neutral to Buy. Meanwhile, JPMorgan analyst Harlan Sur has outlined a potential 30% surge in the company’s stock price by December 2025.
Sur’s optimistic outlook is based on Texas Instruments’ robust capital management strategy and its ability to scale capex spending flexibly based on demand. The company recently presented a scenario analysis that highlighted its aim to achieve approximately $9 of free cash flow per share by 2026. Sur believes this strategy will translate into “best-in-class free cash flow per share and dividend growth over the longer term.”
Texas Instruments’ growth is expected to be fueled by increased semiconductor content in key markets like automotive and industrial sectors. The company’s strategic build-out of its 300mm, low-cost U.S. manufacturing capacity is also expected to benefit from the evolving geopolitical landscape.
Sur sees the company’s gross margins trending higher, with a return to a 25%-35% free cash flow margin target by 2026. With Texas Instruments positioned as a leader in high-value analog and embedded products, Sur views the stock as a high-quality investment with above-average leverage, broad-based market exposure, and a shareholder-friendly capital allocation strategy. These factors make Texas Instruments well-positioned for continued success.
