Should I Buy Texas Instruments Stock in 2025? Insights for South Africa

What is Texas Instruments?

*Estimate based on typical margin, as EBITDA not directly disclosed in report.

What is the price of Texas Instruments stock?

The price of Texas Instruments stock is rising this week. Currently trading at $184.99, the stock has gained 0.46% over the past 24 hours, though it shows a slight weekly dip of 0.23%.

Texas Instruments maintains a robust market capitalization of $168.06 billion, with an average daily volume over the past three months at 8.25 million shares.

The stock's P/E ratio stands at 34.84, alongside a healthy dividend yield of 2.95% and a beta of 0.95, reflecting relatively moderate volatility.

This steady performance may appeal to South African investors seeking a balance between growth opportunity and consistent income.

Our complete analysis on the Texas Instruments stock

Having thoroughly reviewed Texas Instruments’ latest financial results and the stock’s nuanced performance over the last three years, our proprietary analysis—integrating technical indicators, rich market data, peer benchmarking, and forward-looking sector insights—brings a fresh perspective to this industry leader. Drawing from a broad mosaic of sources and algorithm-driven evaluation, we distill the key factors that will matter most for investors seeking exposure to the semiconductor and technology hardware space in 2025. So, why might Texas Instruments stock once again become a strategic entry point into the global semiconductor sector in 2025?

Recent Performance and Market Context

Despite short-term headwinds and a modest year-to-date dip of 1.34%, Texas Instruments (NASDAQ: TXN) is revealing stabilising signs after a period of cyclical adjustment within the semiconductor industry. As of May 30, 2025, the stock trades at $184.99, marking a firm recovery from its recent lows and establishing resilience above its key support zones. While the six-month and one-year returns stand at -7.98% and -5.09% respectively, these numbers are set against the backdrop of sector-wide softness that has affected nearly all peers. This context is crucial, as prevailing industry cycles tend to present outsized upside potential once demand begins to recover.

Importantly, positive recent developments signal an encouraging inflection point. Notably, TXN has harnessed benefits from the US CHIPS Act, receiving $588 million in investment tax credits, and has redirected substantial capital expenditures—over $4.8 billion—towards state-of-the-art manufacturing expansion. Coupled with enhanced macroeconomic prospects, especially in automotive and industrial end-markets rebounding from last year’s lows, Texas Instruments remains positioned as a strategic beneficiary of both sector recovery and renewed US policy support for domestic chip production.

Technical Analysis

On the technical front, Texas Instruments is showing a constructive setup for investors seeking low-risk entry. The current RSI (14-day) stands at 59.62—firmly neutral, suggesting the stock is neither overbought nor oversold. The MACD remains slightly bearish, but with a value of 5.35, momentum appears near a turning point, hinting at a pending reversal as short- and medium-term moving averages continue to strengthen.

Crucially, all of the 20-, 50-, and 100-day moving averages are generating clear buy signals and the stock is clustered just beneath its 200-day moving average ($187.33), a classic technical zone where reversals frequently begin for quality large caps. Support at $174.12 has held firm over recent weeks, while the near-term resistance at $190.59 presents a realistic challenge should institutional flows accelerate. Consensus on technicals is overwhelmingly bullish (13 buy, 6 neutral, 3 sell), with a “strong buy” on moving averages reinforcing that the backdrop is aligning well for a new bullish cycle.

Fundamental Analysis

Fundamentally, Texas Instruments continues to shine as a rare combination of consistency and innovation within the sector. The company delivered full-year 2024 revenue of $15.64 billion and net income of $4.8 billion, boasting an impressive profit margin of 30.36%. Although annual revenue decreased 11% amid an industry-wide correction, the group’s superior operational leverage—orchestrated through advanced 300mm production and supply chain discipline—allowed it to maintain resilient free cash flow of $1.5 billion and a robust cash position exceeding $5 billion.

From a valuation perspective, the current P/E (TTM) of 34.84 and dividend yield of 2.95% offer an unusual blend of growth and income for technology-focused investors, especially in the context of today’s persistently high multiples for established semiconductor leaders. The price/sales ratio remains attractive versus long-term sector averages, and a return on equity of 29.19% underscores balance sheet strength. Strategic investments in R&D ($1.96 billion in 2024), aggressive capital expenditure for future-proofing manufacturing, and a vast patent portfolio cement Texas Instruments’ status among the world’s most innovative, defensible tech franchises.

Volume and Liquidity

Sustained average daily trading volumes (8.25 million shares) and a remarkably broad public float of 906.95 million shares contribute to impressive liquidity—a key confidence marker for global institutions and individual investors alike. This deep trading base cushions against volatility and enables dynamic price discovery, which may facilitate swift revaluation should sector momentum accelerate or near-term catalysts materialise. Liquidity at these levels often signals underlying market consensus that the current price action is supported by strong institutional participation.

Catalysts and Positive Outlook

• Major Manufacturing Expansion: The company’s ongoing $4.8 billion capital investment in 300mm wafer production secures cost advantages and ensures the ability to scale quickly as sector demand rebounds.
• CHIPS Act and Government Support: Receipt of $588 million in federal tax credits lowers cost of capital and enhances free cash flow, translating into shareholder value.
• Automotive & Industrial Recovery: With burgeoning demand for semiconductors in electric vehicles, industrial automation, and IoT, Texas Instruments holds pole position for multi-year structural growth.
• AI/Edge Computing Penetration: The group’s expertise in high-reliability, embedded processing chips makes it an integral beneficiary of the AI and edge computing boom.
• Robust ESG Initiatives: Strategic focus on sustainable manufacturing and supply chain transparency increasingly appeals to global ESG-focused investors—a growing influence on institutional flows.

Looking ahead to 2025, management’s guidance is prudent but confident: Q1 revenue is seen at $3.74 - $4.06 billion, with EPS targeted between $0.94 and $1.16, and a manageable tax rate around 12%. Notably, the return of global industrial production and automotive inventories to historic norms has the potential to surprise consensus estimates to the upside, which would likely drive a material rerating for TXN shares.

Investment Strategies

• Short-term: After consolidating near established technical support ($174.12), TXN’s recent stabilization offers attractive entry for swing traders seeking a technical inflection, particularly if the stock closes above $190.59, confirming a breakout.
• Medium-term: Investors with a 6-12 month horizon can target the $200+ range as the most likely technical and fundamental rerating zone—particularly as cyclical recovery in chips and supportive US/ZA cross-border flows lift the sector.
• Long-term: For buy-and-hold portfolios seeking both capital appreciation and recurring income, Texas Instruments’ dividend visibility, high free cash flow yields, and sector dominance provide a compelling foundation. Ideal positioning could arise now, with the stock just below its 200-day moving average—often a precursor to renewed institutional accumulation—while further expansion into next-gen automotive and industrial applications offers secular growth optionality.

Is it the Right Time to Buy Texas Instruments?

In sum, Texas Instruments displays a formidable array of strengths for investors who prize resilient profitability, strategic agility, and global leadership in the world’s most essential chip markets. Shareholder returns remain rich and consistent; the group’s technological edge is protected by deep manufacturing expertise and unmatched R&D spend; and the expanding relevance of semiconductors across automotive, AI, industrial, and consumer verticals should propel multi-year top-line growth.

Technical signals are aligning for a positive shift, just as new catalysts accumulate and US industrial policy provides fresh tailwinds. The stock not only seems to represent an excellent opportunity in light of its current consolidation and dynamic sector backdrop, but the underlying fundamentals justify renewed interest among both local and global investors committed to long-term value creation.

In this context, Texas Instruments stands out as a global technology powerhouse that may well be entering a new bullish phase—offering investors in South Africa and beyond a timely and strategic entry into the persistent growth story of semiconductors. For those seeking resilient exposure to future-proof tech, TXN’s combination of innovation, scale, and shareholder discipline marks it as a prime candidate for serious portfolio consideration. Opportunity, conviction, and disciplined strategy are set to converge as Texas Instruments powers into 2025.

How to buy Texas Instruments stock in South Africa?

Buying Texas Instruments (TXN) shares online from South Africa is straightforward, secure, and accessible through regulated online brokers. Investors have two main options: you can either buy real TXN shares outright (spot buying) or trade on price movements using Contracts for Difference (CFDs). Spot buying makes you a direct shareholder, while CFDs let you trade with leverage and go long or short, without owning shares. Both approaches can be started online in just a few steps. To help you choose the right broker for your needs and budget, you’ll find a detailed comparison of the top platforms further down the page.

Spot Buying

When you buy Texas Instruments stock "for cash," you are purchasing real TXN shares on the NASDAQ, and become a registered shareholder. This method gives you exposure to dividends, shareholder voting rights, and any long-term share price increases. Regulated South African brokers typically charge a fixed commission per order, often ranging from R100 to R250, or a flat USD fee (e.g., $5) for US stocks.

Example

Suppose the Texas Instruments share price is $184.99 (about R3,560 at an exchange rate of R19.25/USD). With a R19,250 investment (about $1,000), you could buy approximately 5 shares ($1,000 ÷ $184.99 ≈ 5), including a brokerage fee of around $5.

✔️ Gain Scenario

If the share price rises by 10%, your TXN shares are now worth $1,100 (R21,175). That’s a +$100/+R1,925 gross gain, or +10% on your initial investment.

Trading via CFD

CFD trading lets you speculate on the price movement of Texas Instruments shares without owning the underlying asset. CFDs allow you to use leverage, amplifying both gains and losses. Common fees include the “spread” (the difference between buy and sell prices) and overnight financing (a small daily charge if you hold positions beyond market close).

Example

With a $1,000 (about R19,250) deposit and 5x leverage, you can gain exposure to $5,000 (about R96,250) worth of TXN shares.

✔️ Gain Scenario

If the TXN stock price climbs 8%, your CFD position gains 8% × 5 = 40%. That’s a profit of $400 (R7,700) on your $1,000 stake, before fees.

Final Advice

Before investing, carefully compare brokerage fees, platform features, and regulatory protection. While spot buying suits investors seeking long-term exposure and dividends, CFD trading can be better for those aiming for short-term moves with leverage. The right method depends on your financial goals and risk tolerance—see the comparison lower down this page to find the best fit for your investing journey.

Our 7 tips for buying Texas Instruments stock

The latest news about Texas Instruments

Texas Instruments’ stock price over the last week has remained stable, bolstered by strong technical buy signals. Despite a marginal weekly decline of 0.23%, Texas Instruments (TXN) closed at $184.99 on May 30, 2025, showing positive intraday momentum and outperforming the analyst consensus target price of $178.60. Technical analysis underscores a constructive outlook—major moving averages (20, 50, and 100 days) all indicate a buy, while the overall technical consensus remains bullish. This resilience is pivotal for South African investors tracking international semiconductor leaders, reflecting TXN’s stability even in choppy global tech markets.

Continued returns to shareholders demonstrate financial strength, with robust dividend payouts and share repurchases supporting total yield. Over the trailing twelve months, Texas Instruments has returned $5.72 billion to shareholders, including $4.8 billion in dividends and $929 million in share buybacks. With an attractive dividend yield approaching 3% and a consistent history of payouts, TXN remains appealing for South African funds and investors seeking stable income and exposure to global technology sector dividends, which can play a diversifying role in multi-asset portfolios.

Substantial manufacturing investments and US CHIPS Act incentives are driving capacity expansion for long-term growth. Texas Instruments received $588 million in investment tax credits as part of the United States CHIPS Act and invested $4.82 billion in manufacturing expansion, particularly 300mm wafer production. This positions the company to capitalize not only on recovering global demand in automotive and industrial electronics but also to weather supply shocks—a critical consideration for South African distributors and local electronics manufacturers reliant on stable, long-term component supply from global leaders.

Texas Instruments’ competitive edge in analog semiconductors and industrial applications aligns with key South African growth sectors. As the South African market expands its focus on industrial automation, automotive innovation, and IoT solutions, Texas Instruments’ leadership in analog and embedded processing provides a strategic advantage. The company’s strong R&D investment and diversified end-market exposure (including automotive and industrial clients) offer reassurance to South African corporates and technology integrators sourcing sophisticated analog components for next-generation infrastructure and manufacturing upgrade projects.

Stable fundamentals and significant cash reserves underscore ongoing financial resilience, a key metric for global investors. The company maintains a solid balance sheet with $5.01 billion in cash and short-term investments, a 30.36% profit margin, and strong return on equity exceeding 29%. These factors signal robust financial stewardship and an ability to self-fund growth through market cycles. For professional analysts in South Africa, this resilience ensures continuity in supply channels and ongoing dividend reliability, which supports long-term positioning in global technology and industrial value chains.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.