TXN (Texas Instruments Incorporated): Themes, ETFs, and Basket Ideas
Last updated June 2026
Short answer
What does Texas Instruments Incorporated do?
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.
TI operates its own manufacturing capacity, which is unusual for a designer of this scale. The company is investing tens of billions in new US wafer fabs in Texas and Utah, partially supported by CHIPS Act funding. Founded in 1930, headquartered in Dallas, Texas. Haviv Ilan has been CEO since 2024.
Where is Texas Instruments Incorporated heading?
1. US-domestic manufacturing capacity expansion.
TI is in the middle of one of the largest US semiconductor fab buildouts in history (Sherman, Texas; Lehi, Utah). The strategy is to bring more capacity in-house, reduce dependency on Asian foundries, and qualify for CHIPS Act subsidies. Near-term margins are compressed by the construction; long-term unit economics improve.
2. Automotive and industrial as core growth markets.
Automotive electrification (each EV uses dramatically more analog content than ICE vehicles), plus industrial automation, account for the majority of TI's revenue. Both are durable secular trends.
3. Inventory and pricing cycles.
TI's revenue is cyclical with industrial and automotive end markets. The 2023-2024 inventory destocking depressed revenue; recovery is underway. The cycle is durable but the timing of the next downturn is uncertain.
4. Dividend growth focus.
TI has a long history of consistent dividend growth and has emerged as one of the larger dividend payers in semiconductors. Capital return is a meaningful part of the total return story.
Risks worth tracking: The massive US fab expansion compresses margins near-term and creates execution risk if demand doesn't materialize as expected. Cyclical end markets (industrial, automotive) can swing meaningfully.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Texas Instruments Incorporated's investor relations page or your broker.
- 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
- P/E (TTM): ~30x
- Price to sales: ~10x
- Dividend yield: ~3.0%, with long history of growth
- Free cash flow: ~$3 billion annually (capex-heavy)
- Capex: ~$5 billion annually for new fabs
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.
Themes TXN belongs to
These are the investment theses TXN naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
ETFs that hold TXN
If you want TXN exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
TXN's competitors
Analog and signal-chain semiconductors
Analog Devices is the primary direct competitor and is closer in size and breadth. NXP Semiconductors competes in automotive and industrial analog. STMicroelectronics is a European competitor. Microchip Technology is a competitor in microcontrollers and small analog.
Power management ICs
Monolithic Power Systems (MPWR) is a fast-growing specialty competitor in power management. Renesas, Infineon, and ON Semiconductor are larger competitors in automotive power.
Microcontrollers
Microchip Technology, NXP, STMicroelectronics, Renesas, and Infineon. The MCU market is more fragmented than analog signal-chain.
Similar stocks
Other names that show up alongside TXN in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using TXN in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where TXN would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around TXN with Walnut
Use Texas Instruments Incorporated as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is Texas Instruments' ticker symbol?
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TXN, listed on Nasdaq. Officially Texas Instruments Incorporated. Founded 1930, headquartered in Dallas, Texas. Trades during US market hours, available at every major US brokerage.
Who are TI's competitors?
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Primary direct competitor in analog semiconductors is Analog Devices (ADI). Other meaningful competitors: NXP Semiconductors (automotive analog), STMicroelectronics (European analog and MCU), Microchip Technology (microcontrollers), Monolithic Power (power management), Infineon (automotive power). Analog is more fragmented than logic semiconductors.
Does TI pay a good dividend?
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Yes. TI yields approximately 3.0% as of early 2026 and has raised the dividend every year for over two decades. The dividend is well-covered by operating cash flow even during the current heavy capex period. The combination of yield and growth makes TI one of the more popular semiconductor names for income-focused investors.
What is TI's P/E ratio?
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Approximately 30x trailing twelve months as of early 2026. Premium to the S&P 500 average (~22x) reflecting the analog business quality and dividend growth track record. Forward P/E is lower as earnings recover from the cyclical trough.
What does Texas Instruments do?
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TI designs and manufactures analog and embedded processing semiconductors: signal-chain chips (op-amps, ADCs, DACs), power management ICs, and small microcontrollers. End markets are industrial equipment, automotive, communications infrastructure, and consumer electronics. TI operates its own wafer fabs, unusual for a designer of this scale.
Who owns the most TI stock?
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Major institutional holders include Vanguard (~10%), BlackRock (~8%), and State Street (~5%). Insider ownership is low. TI is broadly institutionally owned with a long history of being a favorite of dividend-focused investors.
Is TI an AI stock?
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Indirectly. TI's products are essential to industrial systems (including AI server power conversion, signal conditioning, and various supporting analog functions), but TI is not concentrated in AI accelerators or AI-specific silicon. Analog and embedded semiconductors are foundational across all electronics including AI infrastructure, but the AI exposure is diffuse rather than concentrated.
Which ETFs have the most TI exposure?
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SMH (VanEck Semiconductor) holds TXN at ~4.0%. SOXX (iShares Semiconductor) holds TXN at ~5.4%. SCHD (dividend ETF) holds TXN at ~4.4% because of the consistent dividend growth track record. QQQ, VOO, and broad tech ETFs hold TXN at moderate weights as part of broader semiconductor exposure.
Which thematic baskets typically include TI?
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Two themes on Walnut. Semiconductors (one of the largest US analog semiconductor companies) and Dividend growth (long history of consistent annual dividend growth supported by stable analog business). TXN is a common dual-theme inclusion in income-and-quality baskets.
How much of SCHD is TI?
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Approximately 4.4% as of early 2026. TXN is consistently one of the largest SCHD holdings because of the multi-decade dividend growth history that screens favorably under SCHD's methodology. In SMH (semiconductor ETF), TXN is at ~4.0%. In SOXX (broader semi methodology), TXN is at ~5.4%.
Is TI in the S&P 500?
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Yes. Texas Instruments has been an S&P 500 constituent for many years. It is typically a top-50 S&P 500 holding by market cap.
What is TI's market cap?
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Approximately $170 billion as of early 2026. TI is among the largest US semiconductor companies by market cap. Market cap has been more stable than logic-design semiconductor peers because of the analog business's lower cyclicality and the consistent dividend growth premium.
What does the US fab expansion mean for TI?
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TI is in the middle of one of the largest US semiconductor fab buildouts in history (Sherman, Texas; Lehi, Utah). The strategy brings more capacity in-house, reduces dependency on Asian foundries, and qualifies for CHIPS Act subsidies. Near-term margins are compressed by construction; long-term unit economics improve as new capacity comes online and the depreciation tail is absorbed.
Is TI a good defensive stock?
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Relatively yes within semiconductors. TI's analog business has historically had lower cyclical volatility than logic-design semiconductor peers (NVDA, AMD), and the consistent dividend growth provides downside support. TI is often classified as a 'defensive semiconductor' position. Walnut isn't an investment adviser; whether TI fits depends on broader portfolio context.
Should I own TI directly or through SCHD?
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Both common. Direct TXN ownership gives concentrated analog semiconductor exposure plus the dividend yield. SCHD includes TXN at ~4.4% along with other quality dividend-growth names. Many Walnut users hold both: direct TXN for analog semi conviction plus SCHD for diversified quality-dividend exposure.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Texas Instruments Incorporated's investor relations page or your broker before making investment decisions.