TXN
Why TXN is still getting love
Texas Instruments is back in the “buy the dip” conversation, and for once that isn’t just Wall Street doing its usual jazz hands. The thesis here is pretty simple: industrial demand is improving, data center sales are ripping, and margins are doing their best impression of a quiet compound interest machine.
Industrial revenue jumped 30% year over year, which sounds impressive until you hear management still sees the segment about 15% below its 2022 peak. Translation: there may still be runway left if this cycle keeps healing. That matters because industrial is the kind of business that can quietly pad the profit pool without needing a flashy product launch or a viral keynote.
The data center story is the spicy part
Data center revenue surged 90% year over year, and management says design-ins are rising with demand holding up into the second half of 2026 and even 2027. That’s the semiconductor version of a restaurant getting booked out months in advance — not bad when you’re trying to convince investors this isn’t just a one-quarter pop.
A few things to keep on your radar:
- Stronger industrial demand can keep the revenue base sturdier than the market expected.
- Margin expansion means more of each sales dollar is sticking around as profit.
- Robust free cash flow gives TXN room to keep returning cash while still investing in growth.
Big picture
This isn’t a moonshot headline. It’s more like a steady engine check: the core business looks healthier, the highest-margin pieces are improving, and the market may still be underestimating how long the recovery lasts. If you’ve been waiting for a softer entry point, this is the kind of setup that keeps the bull case alive.