NASDAQ: TXN · Semiconductors
Texas Instruments (TXN) fair value: undervalued or overvalued?
As of 26 Sep 2026, Faircurve's model values Texas Instruments (TXN) at $286.42 a share. The stock last closed at $293.80, which puts the model's fair value 2.5% below the price. On the model's bands that reads as Fairly valued.
Revalued . Price is the close of 2 Oct 2026. Texas Instruments Incorporated.
Faircurve Insights · 26 Sep 2026
Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing.
Faircurve's model on 26 Sep 2026 found a fair value of $286.42 a share, the midpoint of 2,000 simulations. This fair value moved +3.3% from $277.36 on 19 Sep 2026. The calibrated range over 63 trading days is $260.30 to $363.06, and ranges built this way held the price 60% of the time at this horizon. The evidence grade is Medium.
The overall quality score is 63 out of 100, against comparable companies. Profitability scores 83, Earnings quality scores 40, Growth quality scores 72, Capital discipline scores 25, Balance sheet scores 58, and Stability scores 75. The model compares Texas Instruments Incorporated (TXN) with KLA Corporation (KLAC), QUALCOMM Incorporated (QCOM), Analog Devices, Inc. (ADI), Applied Materials, Inc. (AMAT), Lam Research Corporation (LRCX), and Intel Corp. (INTC). The median size of moves around the last 8 earnings reports, ignoring direction, was 7.9%.
Written from the figures on this page for the 26 Sep 2026 valuation and checked by rule before publishing: every number is one printed here, no forecast, no instruction. The price, the gap and the verdict are the page's own and change daily. Not a recommendation.
What price range does the model give TXN?
The calibrated range for TXN over 63 trading days is $260.30 to $363.06. It sits around the last close, and its width comes from the volatility that TXN's own options imply (47% a year), calibrated weekly against realised prices (n = 3,330 past valuations, refreshed 26 Sep 2026). Ranges built this way held the price 60% of the time at this horizon. The fair value is the model's opinion and rides beside the range. It is not the centre of it.
The model's own simulated range, from the 20th to the 80th percentile of its runs, is $226.75 to $355.08. In 54% of the simulations the fair value came out above the price the model ran on.
How does TXN score on business quality?
Texas Instruments's overall quality score is 63 out of 100. Each factor below is a score against comparable companies, not a percentile of the metric beside it.
| Factor | Score (0 to 100) | Headline measure | Peer median |
|---|---|---|---|
| ProfitabilityReturn on invested capital against the peer group, with a bonus for an improving trend. | 83 | 22.4%ROIC | 7.5% |
| Earnings qualityHow much of reported profit is cash: free cash flow to net income, and the accrual ratio (the share of earnings that is not cash). | 40 | 0.88xFCF / net income | 1.16x |
| Growth qualityTrailing revenue growth, forward growth from consensus, and the direction of analyst estimate revisions. | 72 | 13.0%Revenue growth, trailing | 15.3% |
| Capital disciplineReinvestment efficiency (capital spending per unit of revenue) and net buybacks. | 25 | 0.3%Net buybacks / market value | 0.5% |
| Balance sheetNet debt to EBITDA and interest coverage. | 58 | 1.14xNet debt / EBITDA | 0.90x |
| StabilityDownside volatility of the EBITDA margin over the last five years. | 75 | 2.6 ptsEBITDA margin downside volatility, 5y | 5.4 pts |
How does TXN compare with similar companies?
The companies in semiconductors closest to Texas Instruments in market value, each on the same model and the same date.
| Company | Last close | Model fair value | Gap | Model verdict |
|---|---|---|---|---|
| KLAC KLA Corporation | $206.89 | $190.87 | -7.7% | Fairly valued |
| MRVL Marvell Technology, Inc. | $272.29 | $235.42 | -13.5% | Low evidence grade |
| QCOM QUALCOMM Incorporated | $184.87 | $254.02 | +37.4% | Undervalued |
| ARM Arm Holdings plc American Depositary Shares | $307.49 | $270.80 | -11.9% | Data under review |
| ADI Analog Devices, Inc. | $417.15 | $425.30 | +2.0% | Fairly valued |
| AMAT Applied Materials, Inc. | $540.04 | $591.13 | +9.5% | Fairly valued |
| LRCX Lam Research Corporation | $347.49 | $339.37 | -2.3% | Fairly valued |
| INTC Intel Corp. | $119.33 | $112.53 | -5.7% | Fairly valued |
When does TXN report earnings, and how has the stock reacted?
Texas Instruments's next earnings report is scheduled for 27 Oct 2026. Companies can move their dates.
Options prices on 2 Oct 2026 imply a move of about 5.3% in either direction through the nearest expiry, about 13 days out. That is the size the market is pricing, not a direction. TXN's 30 day implied volatility works out to about 13.5% over one month.
How TXN moved around its last 8 earnings reports
Each move runs from the last close before the report to the first close after it, so it covers companies that report before the open and after the close. The median size across these 8 reports, ignoring direction, was 7.9%.
| Report date | Two session move |
|---|---|
| 22 Jul 2026 | -2.2% |
| 22 Apr 2026 | +21.1% |
| 27 Jan 2026 | +10.0% |
| 21 Oct 2025 | -4.9% |
| 22 Jul 2025 | -13.2% |
| 23 Apr 2025 | +10.5% |
| 23 Jan 2025 | -5.9% |
| 22 Oct 2024 | +3.0% |
Texas Instruments at a glance
Texas Instruments Incorporated (TI) specializes in the global design, production, and sale of semiconductors to electronics engineers and manufacturers. Its operations are structured into two core segments: Analog and Embedded Processing.
- Market value
- $253.9B
- Sector
- Technology
- Industry
- Semiconductors
- Revenue expected, next twelve months
- $24.2B
- Consensus revenue growth, next fiscal year
- +24.1%
- Analysts with estimates
- 21
- Beta to the US market
- 1.49
- First valued by Faircurve
- 1 May 2026
How the fair value is worked out: the model prices Texas Instruments on the value of the whole business, debt included, against the operating profit analysts expect next year (forward EV/EBITDA), runs 2,000 simulations across its inputs and takes the midpoint. The full method is documented here.
What changed in the latest valuation?
On 19 Sep 2026 the model's fair value for TXN was $277.36. As of 26 Sep 2026 it is $286.42, a change of +3.3%. The model revalues every stock it covers each week, and again after an earnings report.
Questions about Texas Instruments's valuation
Is Texas Instruments stock undervalued or overvalued?
On Faircurve's model, TXN reads as Fairly valued as of 26 Sep 2026. The model's fair value is $286.42 a share against a last close of $293.80, a gap of -2.5%.
What is TXN's fair value?
$286.42 a share as of 26 Sep 2026, the midpoint of 2,000 simulations. The model's own 20th to 80th percentile range is $226.75 to $355.08.
What price range does the model give TXN?
$260.30 to $363.06 over 63 trading days. Ranges built this way held the price 60% of the time across 3,330 past valuations, refreshed 26 Sep 2026.
When does Texas Instruments report earnings next?
The next report is scheduled for 27 Oct 2026. Companies can move their dates.
How much has TXN moved on past earnings reports?
Across its last 8 reports the median two session move was 7.9%, ignoring direction. The largest was +21.1% around the report of 22 Apr 2026.
How confident is the model in this valuation?
The model's evidence grade for TXN is medium. The grade looks at how complete the inputs are, how many comparable companies there are and how closely they agree, and how wide the range of outcomes is. It is not a probability that the fair value is right, or that the price reaches it.