Is Texas Instruments Stock Underperforming the Dow?

Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. With a market cap of $199.5 billion, the company develops analog ICs and embedded processors. 

Companies worth $10 billion or more are generally described as “large-cap stocks,” and TXN definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the semiconductors industry. TXN remains the global leader in analog chip production, providing essential components for processing real-world signals. This dominance showcases the company's innovation and competitive edge in the semiconductor market. With a diverse product range including processors, microcontrollers, and calculators, TXN mitigates risk and capitalizes on cross-selling opportunities within its customer base.

Despite its notable strength, TXN slipped 7.8% from its 52-week high of $231.32, achieved on Feb. 11. Over the past three months, TXN stock gained 32.3%, outperforming Dow Jones Industrials Average’s ($DOWI) 5.9% gains during the same time frame.

Shares of TXN rose 23% on a YTD basis, outperforming DOWI’s YTD gains of 2.3%. However, in the longer term, the stock climbed 6.3% over the past 52 weeks, underperforming DOWI’s 13.2% returns over the last year.

To confirm the bullish trend, TXN has been trading above its 200-day moving average since early January. The stock is trading above its 50-day moving average since early December, 2025. 

On Jan. 27, TXN reported its Q4 results, and its shares closed up by 9.9% in the following trading session. Its EPS of $1.27 fell short of Wall Street expectations of $1.30. The company’s revenue was $4.42 billion, missing Wall Street forecasts of $4.44 billion. For Q1, TXN expects revenue in the range of $4.3 billion to $4.7 billion.

In the competitive arena of semiconductors, Analog Devices, Inc. (ADI) has taken the lead over TXN, showing resilience with a 31.3% uptick on a YTD basis and 50.3% gain over the past 52 weeks.

Wall Street analysts are reasonably bullish on TXN’s prospects. The stock has a consensus “Moderate Buy” rating from the 35 analysts covering it, and the mean price target of $217.22 suggests a potential upside of 1.8% from current price levels.