Should You Hold on to TXN Stock Despite its 12% Dip in a Month?

From Nasdaq: 2025-04-03 10:40:00

Texas Instruments (TXN) shares have declined by 12.3% in the past month, underperforming the industry, sector, and S&P 500 index. While near-term challenges exist, the long-term growth story for TXN remains strong, making a case for holding onto the stock. Strategic moves by TXN include building inventory, expanding production facilities, and securing funding for growth initiatives.

Reasons behind TXN’s recent underperformance stem from market weakness, company-specific concerns, and geopolitical tensions with China. TXN’s industrial and automotive markets have shown softness, contributing to the decline in stock price. Despite these challenges, TXN is taking steps to accelerate recovery and maintain a stable business outlook.

TXN has a strong partner base, including companies like Micron Technology, Apple Inc., and LeddarTech Holdings Inc., which support its growth in consumer and automotive markets. Analysts project a 9% year-over-year revenue growth for TXN in 2025, with earnings expected to increase by 2.9%. Holding a Zacks Rank #3 (Hold), TXN has beaten earnings estimates in the past four quarters with an average surprise of 8.9%.

Zacks Investment Research highlights a top stock with potential for significant gains. This innovative financial firm with a growing customer base and cutting-edge solutions is poised for substantial growth. While not all picks guarantee success, this stock shows promise for surpassing previous Zacks’ Stocks Set to Double. Download the report for more insights on stock recommendations.



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