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

Same yardstick, side by side (as of August 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.

Reading it: ON is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

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. ON 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 ON 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.

onsemi (ON Semiconductor) is a US-based semiconductor company focused on intelligent power and sensing technologies. Its power products, including silicon and silicon-carbide devices, manage and convert electricity in electric vehicles, industrial equipment, and power supplies, while its sensing products, such as image sensors, are used in automotive cameras and industrial vision. The company has deliberately concentrated on automotive and industrial markets, where semiconductor content per vehicle and per machine is rising, and it has been repositioning its manufacturing and product mix toward higher-margin, differentiated products rather than commodity chips.

Full ON 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.

• ON drivers: AI data-center power opportunity; Rising semiconductor content in vehicles.
• 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: The dominant risk is cyclicality: onsemi's automotive and industrial end markets rise and fall with the economy, vehicle production, and factory investment, so revenue and earnings can swing sharply and a soft patch can pressure results even amid long-run content growth. For TXN, the massive US fab expansion compresses margins near-term and creates execution risk if demand doesn't materialize as expected.

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 ON 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 ON and TXN guides.

ON. Figures are approximate and tied to the asOf date; verify live numbers before acting. For a cyclical semiconductor company, earnings multiples can look high near a cyclical trough (when profits are depressed) and low near a peak, so it helps to consider where automotive and industrial demand sit in the cycle rather than a single P/E. The AI data-center growth adds a faster-moving element to what has been a more cyclical, content-driven story.

TXN. TI's premium valuation reflects the quality of the analog business (sticky designs, long product lifecycles, high margins) and the dividend growth track record. The multiple is pressured near-term by the fab capex; longer-term it normalizes as new capacity comes online.

Headline figures (approximate, Jul 2026): ON shows revenue (q1 2026) ~$1.51 billion, above the midpoint of guidance, gaap gross margin ~38.5% in Q1 2026, non-gaap diluted eps ~$0.64 in Q1 2026, ai data-center growth up more than 30% sequentially; expected to roughly double year over year in 2026; TXN shows revenue (ttm) ~$17 billion (recovering from 2023-2024 trough), operating margin ~38% (compressed by fab capex), net income (ttm) ~$5 billion, eps (ttm) ~$5.50.

ON 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 ON and TXN exposure against your real portfolio. It is not an investment adviser.