ADI vs TXN: Which Is the Better Buy in 2026?

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. ADI and TXN share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined ADI and TXN exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Analog Devices designs, manufactures, and markets integrated circuits, software, and subsystem products that convert real-world analog signals into digital data and back again. Its core product families include data converters, amplifiers, power management ICs, radio frequency and microwave chips, and MEMS-based sensors such as accelerometers and gyroscopes. ADI sells into four end markets: Industrial (the largest, roughly half of revenue), Automotive, Communications, and Consumer. Revenue is generated primarily through direct sales to original equipment manufacturers and through a global distribution network spanning North and South America, Europe, Japan, China, and the rest of Asia. The company's hybrid manufacturing model combines owned fabs with foundry partnerships, giving it flexibility in capacity and cost management.

Full ADI guide

Texas Instruments (TI) is one of the largest analog semiconductor companies in the world. The vast majority of TI's revenue comes from analog and embedded processing chips: signal-chain semiconductors (op-amps, ADCs, DACs), power management ICs, and small microcontrollers. These are unglamorous compared to GPUs but are essential to nearly every electronic system: industrial equipment, automotive (a major end market), communications infrastructure, and consumer electronics.

Full TXN guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• ADI drivers: Industrial Automation and the Intelligent Edge; AI Infrastructure and Automated Test Equipment.
• TXN drivers: US-domestic manufacturing capacity expansion; Automotive and industrial as core growth markets.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Analog semiconductors are cyclical, and a slowdown in industrial capital spending or a prolonged pause in automotive orders can deflate revenue quickly, as seen during the fiscal 2024 trough. For TXN, the massive US fab expansion compresses margins near-term and creates execution risk if demand doesn't materialize as expected; free cash flow of about $3.55 billion trails a dividend of about $6.08 per share, and debt has risen to about $14 billion.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick ADI if you believe its drivers more; TXN if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the ADI and TXN guides.

ADI. At $408.17, ADI's trailing GAAP P/E of about 48x is inflated by Maxim-related amortization, while the forward P/E of roughly 25x rests on consensus fiscal 2027 EPS of about $16.43. The multiple has actually come down from earlier in 2026 because earnings grew faster than the share price. The November 24, 2026 report will show whether the fourth quarter meets the roughly $4.29 billion revenue estimate.

TXN. TI's premium valuation reflects the quality of the analog business (sticky designs, long product lifecycles, high margins), the dividend growth track record, and now a strong cyclical recovery. Trailing earnings still include the weak 2025 quarters, so the ~43x trailing multiple overstates how expensive the stock is against the ~26x forward figure. Fab spending continues to hold free cash flow well below net income until the new capacity is absorbed.

Headline figures (approximate, October 2026 (through fiscal Q3 2026, the quarter ended August 1, 2026)): ADI shows revenue (ttm) ~$13.9 billion, revenue (fiscal q3 2026) ~$4.02 billion (up ~40% YoY), net income (ttm) ~$4.1 billion (GAAP EPS ~$8.42), gross / operating margin ~66% / ~40%; TXN shows revenue (ttm) ~$19.5 billion (+~23% YoY in Q2 2026), operating margin ~43%, net income (ttm) ~$6.0 billion, eps (ttm / 2027 est.) ~$6.57 / ~$10.18.

ADI and TXN are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined ADI and TXN exposure against your real portfolio. It is not an investment adviser.