New York, Feb 24, 2026, 15:12 EST — Regular session
- TI detailed its 2026 capital plans, leaving TXN shares trailing the broader market.
- The company stuck to its lowered capital spending guidance, while also pointing to its long-term plans for in-house manufacturing.
- Cantor Fitzgerald bumped up its target to $250, sticking with a Neutral rating.
Texas Instruments shares slipped Tuesday, with investors zeroing in on the chipmaker’s 2026 capital management presentation. The session put a spotlight on the company’s spending plans and cash generation, giving Wall Street plenty to chew on.
The stock’s moving on this issue at the moment. Capital expenditures—capex—cover spending on factories and equipment. For TI, that’s made a real difference as the company ramps up its U.S. capacity.
TI’s main business is analog chips, largely destined for industrial and automotive buyers—markets famous for their cyclical swings. The company says ramping up manufacturing should eventually boost margins, though it means swallowing hefty initial costs.
The stock slid 3.6% to $211.95 as of 3:05 p.m. EST, bouncing between $209.59 and $224.17. The Nasdaq, by contrast, was up for the session, according to Investing.com data. (Investing)
Texas Instruments, in prepped comments, projected 2026 capital spending between $2 billion and $3 billion and bumped its inventory-days goal to a range of 150 to 250 days — that’s how long stock would last given current sales. “Our long-term objective remains the same,” the company said, aiming to keep its low-cost manufacturing advantage intact. TI reiterated it intends to return all free cash flow — what’s left after capital spending — to shareholders over time. On the Silicon Labs acquisition, TI said it’ll rely on cash and debt secured prior to closing, with the transaction expected to wrap up in the first half of 2027. (TipRanks)
The update made it clear: Texas Instruments is serious about ramping up in-house work. By 2030, TI is targeting over 95% of its wafers produced internally, with more than 80% coming from 300-millimeter wafers. The company’s aiming to assemble over 90% of products on its own as well. (TipRanks)
Opinions are divided on Wall Street over whether the pitch will actually make TI’s stock narrative any clearer. Cantor Fitzgerald’s Matthew Prisco bumped his price target up to $250 from $225 but stuck with a Neutral rating. For Prisco, it’s all about capex guidance in the near term, along with the latest revenue and free-cash-flow projections. (TipRanks)
Spending’s been brisk for a while now. In its annual report earlier this month, TI put 2025 capex at $4.55 billion, and noted it’s “nearing the end” of a six-year run of heavy investment. For 2026, the company’s targeting a pullback, projecting capex between $2 billion and $3 billion. (SEC)
TI stands out with its push to make more chips internally, a move that separates it from names like Analog Devices and Microchip Technology. Investors regularly look to TI’s capex plans for clues on management’s outlook, especially when it comes to industrial and auto demand.
But this move isn’t one-sided. When demand is steady, pulling back on capex tends to boost free cash flow. Still, if orders lose momentum, traders might take it as a warning—or see it as management conceding that fresh capacity is landing just as the market gets rough.
All eyes now turn to earnings. Texas Instruments comes up next, with an Investing.com calendar slotting their report for April 28. The key focus: will management hold to its $2 billion-to-$3 billion capex guidance, and just how fast will inventory trends start to normalize after the reset? (Investing)
