Upbeat earnings will rescue tech from its DeepSeek dive, these market pros say
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2025
0mins
Source: MarketWatch
Earnings Expectations: Technology companies are expected to report strong earnings this week, which could positively influence investor sentiment and the overall market despite recent stock market declines.
Market Impact of Major Tech Firms: The performance of the "Magnificent Seven" tech companies is crucial, as their potential disappointment could significantly impact the S&P 500, given they represent a large portion of its market cap and forward earnings.
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Analyst Views on TXN
Wall Street analysts forecast TXN stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for TXN is 193.53 USD with a low forecast of 125.00 USD and a high forecast of 245.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
10 Buy
5 Hold
5 Sell
Hold
Current: 218.770
Low
125.00
Averages
193.53
High
245.00
Current: 218.770
Low
125.00
Averages
193.53
High
245.00
About TXN
Texas Instruments Incorporated is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for markets, such as industrial, automotive, personal electronics, communications equipment, and enterprise systems. Its Analog segment includes product lines, such as Power and Signal Chain. Power includes products that help customers manage power in electronic systems. Its portfolio is designed to manage power requirements across different voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated DC/DC switching regulators, power switches, linear and low-dropout regulators, voltage references, and others. Signal Chain includes products that sense, condition, and measure real-world signals to allow information to be transferred or converted for further processing and control. The Embedded Processing segment includes microcontrollers, digital signal processors (DSPs) and applications processors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Consistent Dividend Increases: Texas Instruments offers a dividend yield of 2.6% and has increased its payout for 22 consecutive years, making it an excellent choice for long-term investors, especially given its diversified semiconductor business that attracts growth-oriented investors.
See More
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- Record Backlog: The company reported a record backlog of $194 billion at the end of January, exceeding expectations and reflecting strong demand in the defense sector, further solidifying its appeal as a long-term investment.
- Texas Instruments' Robust Growth: Texas Instruments' stock has surged over 26% year-to-date, with Q4 2025 revenue reaching $4.4 billion, a 10% year-over-year increase driven by strong demand from data centers, highlighting the potential of its diversified semiconductor business.
- Consistent Dividend Growth: Texas Instruments offers a dividend yield of 2.6% and has increased its payout for 22 consecutive years, making it an ideal choice for long-term investors while also attracting those seeking stable income.
See More
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- Key Holdings Contribution: Among the ETF's top ten holdings, Micron Technology led with a 45.4% stock price increase in January, primarily driven by strong demand for memory chips, which boosted the overall ETF performance.
- Strong Earnings Expectations: Nvidia, the ETF's largest holding at 18.3%, is set to report earnings on February 25, with management guiding for quarterly revenue of $65 billion, a 65% year-over-year growth, which could serve as a significant catalyst for future ETF performance.
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- Bond Yield Pressure: Rising US bond yields, with the 10-year T-note yield up 2 basis points to 4.22%, are exacerbated by Chinese regulators instructing banks to reduce their US debt holdings, reviving concerns over the haven status of US assets and potentially impacting investor confidence.
- Earnings Season Insights: More than half of S&P 500 companies have reported earnings, with 79% exceeding expectations, and Q4 earnings growth is projected at 8.4%, marking the tenth consecutive quarter of year-over-year growth, indicating resilience in corporate earnings and potential market support.
- Economic Data Focus: The market is set to focus on upcoming economic data, including a projected 0.8% increase in the employment cost index on Tuesday and a 2.5% year-over-year rise in the consumer price index on Friday, which will provide guidance on future economic trends.
See More
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average provides valuable insights for investors, aiding in market trend assessment and potential buying opportunities.
- ETF Trading Mechanism: ETFs trade like stocks, where investors buy and sell 'units' that can be created or destroyed based on demand, impacting liquidity and market performance.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding highlights notable inflows (new units created) or outflows (old units destroyed), which can significantly affect the performance of individual stocks within the ETF and overall market dynamics.
See More
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- Market Potential: Texas Instruments' analog chips play a crucial role in power management within data centers, and with the initial buildout of AI infrastructure, significant growth is expected in the coming years, positioning the company as a key player in the AI market.
- Investment Expansion: Texas Instruments has been actively investing in new chip production capacity and recently acquired competitor Silicon Labs, indicating the company's preparedness for future growth and enhanced market competitiveness.
- Sales Reporting Adjustment: In Q4 2025, the company will report its data center business separately, which, despite accounting for only 9% of total revenue, grew 64% year-over-year, showcasing strong market demand and growth potential.
- Industry Leadership: While other analog chipmakers exist, Texas Instruments, with its industry-leading position and ongoing growth efforts, is expected to become a top chip manufacturer by 2027, particularly driven by the AI buildout.
See More
