Texas Instruments Incorporated ranks in an above-average position in its peer group, with profitability as the main structural support while valuation remains the clearest constraint. That creates a tension: current price behavior looks stronger than the structural profile would suggest.
Peer-relative scores, weakest to strongest
Texas Instruments designs and manufactures semiconductors and integrated circuits, focusing on analog and embedded processing. The company is a major supplier to industrial and automotive markets.
TXN is priced as an IoT beneficiary with structural tailwinds. The market treats TXN as a winner from analog-IoT consolidation, rewarding a 43.7% operating margin (well above peer median, sector leader) with a P/E of 29.8 (top decile premium vs. analog peers) because structural advantages from IoT acquisitions and 300mm fab upgrades mean every operational step confirms the growth story. TXN stands out via IoT focus and advanced US-based manufacturing versus classic analog peers, which keeps the premium closely linked to execution rather than cyclical fluctuations. The market prices in flawless IoT integration and fab execution—so even a minor setback in these areas leads to an immediate and pronounced rerating.
Break down TXN's position across all dimensions with the full interactive tool.
This analysis is rule-based and descriptive. Peer-relative scores are derived from functional peer group comparisons using publicly available financial data. Scores reflect structural positioning only and do not constitute investment advice, a buy or sell recommendation, or a forecast of future performance. AssetNext peer scores are recalculated periodically as new data becomes available.
AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.
Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.
Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.
Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.