Evercore ISI has reiterated an Outperform rating on Texas Instruments Inc. with a price objective of $226.00, which the firm says represents about 15% upside from the prevailing share price of $196.59.
The research note points to several factors supporting the bullish stance. Evercore ISI highlights that many investors remain underweight exposure to analog and microcontroller semiconductor names heading into fourth-quarter earnings, a positioning that could create upside should actual results surprise. The firm also flagged expectations that Texas Instruments could secure meaningful additional market share in the data-center segment in 2026, an outcome that would be constructive for long-term growth prospects.
Texas Instruments is identified in the report as a significant industry participant, with a market capitalization of $178.6 billion in the Semiconductors & Semiconductor Equipment sector. Evercore ISI observed that over the past six months the stock has underperformed the S&P 500 by roughly five percentage points and has lagged the semiconductor index (SOX) by about 35 percentage points during the same interval, suggesting room for relative recovery if industry dynamics shift favorably.
Among potential catalysts, the analyst note flags an upcoming Capital Management Day webinar as an event that could signal improved gross margins into 2027 as depreciation expense declines. Evercore ISI also referenced generally positive feedback from industry contacts regarding the company. The company’s long-running dividend record was noted as another investor-friendly attribute: Texas Instruments has paid dividends for 56 consecutive years and currently yields 2.89%, per InvestingPro figures cited in the note.
Evercore ISI balanced those positives against several cautionary items. The firm observed that Texas Instruments outperformed the S&P 500 by 4% over the most recent week, which could temper near-term upside. Additionally, the company’s price-to-earnings multiple stands at a 39% absolute premium and a 15% relative premium versus the median P/E since 2012, signaling a rich valuation on certain measures. The note also expects year-over-year revenue growth to decelerate to 11% from 14% in the first quarter, indicating a potential slowdown in top-line momentum.
Separately, Stifel has maintained a Hold rating on Texas Instruments and set a $200 price target. In its outlook, Stifel expects the company to meet a revenue estimate of $4.40 billion for the upcoming quarter, which would represent a 7.3% decline from the prior quarter, and to deliver non-GAAP earnings per share of $1.27. Stifel also lifted its price target from $170 to $200, citing signs of a cyclical recovery and growth across all end markets.
On shareholder returns, Texas Instruments declared a quarterly dividend of $1.42 per share that will be payable on February 10, 2026 to holders of record as of January 30, 2026.
In product news, the company introduced a new family of automotive semiconductors, the TDA5 system-on-chip line, targeting enhanced vehicle safety and autonomy. Evercore ISI’s note describes the TDA5 family as providing edge artificial intelligence acceleration with performance in the range of 10 to 1,200 trillion operations per second and power efficiency exceeding 24 TOPS per watt. The chips are positioned to support up to Level 3 autonomous driving capability.
Collectively, the Evercore ISI report frames a mix of strategic opportunities and valuation-related constraints for Texas Instruments heading into upcoming earnings and corporate events. The firm’s Outperform rating and $226 target rest on a combination of potential market-share gains, margin tailwinds from depreciation rolling off, and a long-standing dividend profile, while also acknowledging nearer-term growth moderation and a premium valuation.
Bottom line: Evercore ISI’s reiteration of an Outperform rating underscores confidence in Texas Instruments’ longer-term prospects, even as valuation and revenue-growth pacing pose immediate considerations for investors.