What does Texas Instruments do?

Texas Instruments designs and manufactures computer chips that go inside all kinds of electronics, from cars and factory equipment to personal gadgets. Its analog chips manage power and convert real-world signals like sound, temperature or motion into data, while its embedded processors act as small brains that control devices. It also makes its well-known calculators.

What is Texas Instruments's fair value?

On an owner-earnings DCF, Texas Instruments's most-likely fair value is about $180, versus a recent price near $284. A margin-of-safety estimate, not a price target. Analysis, not advice.

Technology · Semiconductors · TXN

What Texas Instruments Does & How It Makes Money (TXN)

Updated October 2026 · reflects Texas Instruments's latest reported financials

Chipmaker producing analog and embedded processing semiconductors for electronics makers. TI makes money by designing and manufacturing semiconductors itself and selling them to electronics designers and manufacturers.

Texas Instruments's story, moat and numbers — in a 3-minute visual book.

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How Texas Instruments makes money

TI makes money by designing and manufacturing semiconductors itself and selling them to electronics designers and manufacturers. It sells through its direct sales team, through distributors and on its own website.

What Texas Instruments does

Texas Instruments, founded in 1930 and headquartered in Dallas, designs, manufactures and sells semiconductors to electronics makers worldwide. It has two segments. Analog covers power products (battery management, DC/DC and AC/DC converters, linear regulators and more) and signal chain products (amplifiers, data converters, interface, motor drives, clocks, sensing). Embedded Processing covers microcontrollers, processors, wireless connectivity and radar. Its chips go into industrial, automotive, personal electronics, communications equipment and enterprise systems markets. TI also sells DLP projection technology, calculators and application-specific integrated circuits (ASICs). It reaches customers through direct sales, distributors and its website.

Products & services

Power management chips (DC/DC regulators, battery management)
Signal chain chips (amplifiers, data converters, interface)
Microcontrollers and processors
Radar and wireless connectivity chips
DLP projection products
Calculators

What is Texas Instruments worth?

On an owner-earnings DCF, Texas Instruments's most-likely value is about $180 versus a recent price near $284 (37% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$71) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $284

Fair value (most likely)

$180

Range

$113–$292

No-growth floor

$71

Price

~$284

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Technology Industry Semiconductors HQ United States Ticker TXN Moat Wide moat (85/100) Official site

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